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Consider the following information on CSCO options CSCO price Strike Call - July Put - July $55 $54 $3 $1.90 You wish to speculative $10,000

  1. Consider the following information on CSCO options

CSCO price Strike Call - July Put - July

$55 $54 $3 $1.90

You wish to speculative $10,000 on the expectation that CSCO to be much more volatile (than indicated by implied volatility) until the third week of July (expiration). Discuss a speculative strategy based on this hunch. What is the payoff from your strategy if, at expiration, CSCO is trading at $22.

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