Futures and Options Below are several scenarios that requires the use of derivatives. You will be recommending a basic strategy to these clients given what we have discussed in class up to this point. Your answer should be clear and concise at to the best derivative to use. Please give a brief explanation as to why you are recommending the derivative. Since we haven't gone over more complex option and futures combination strategy, use only the available derivative strategies below. 1. Long Call Contract (Out of the Money, At the Money, In the Money) 2. Short Call Contract (Out of the Money, At the Money, In the Money) 3. Long Put Contract (Out of the Money, At the Money, In the Money) 4. Short Put Contract (Out of the Money, At the Money, In the Money) 5. Long Futures Contract 6. Short Futures Contract In the case of options, the strategy is more important than the moneyness' 3. A client called you to ask how to take advantage of a potential opportunity in a company's stock. The client believes that the company will announce a big expansion into Europe that could double the company's revenues in years while tripling the profits. The client believes that the company will announce at the next quarterly conference call in exactly one month from today. What is the best derivative strategy to maximize the return potential for the client if the company does announce the expansion during the next month. Futures and Options Below are several scenarios that requires the use of derivatives. You will be recommending a basic strategy to these clients given what we have discussed in class up to this point. Your answer should be clear and concise at to the best derivative to use. Please give a brief explanation as to why you are recommending the derivative. Since we haven't gone over more complex option and futures combination strategy, use only the available derivative strategies below. 1. Long Call Contract (Out of the Money, At the Money, In the Money) 2. Short Call Contract (Out of the Money, At the Money, In the Money) 3. Long Put Contract (Out of the Money, At the Money, In the Money) 4. Short Put Contract (Out of the Money, At the Money, In the Money) 5. Long Futures Contract 6. Short Futures Contract In the case of options, the strategy is more important than the moneyness' 3. A client called you to ask how to take advantage of a potential opportunity in a company's stock. The client believes that the company will announce a big expansion into Europe that could double the company's revenues in years while tripling the profits. The client believes that the company will announce at the next quarterly conference call in exactly one month from today. What is the best derivative strategy to maximize the return potential for the client if the company does announce the expansion during the next month