Getting Clever with Options Hannah owns one share of IBM stock which is currently trading at $150. She thinks that IBM stock will appreciate over the next year, but thinks long and hard about how to protect herself from possible losses. Hannah decides to write a one-year call option on IBM stock with a strike price of $165, which she sells for a $10 premium. She immediately uses the $10 to purchase a one-year put option on IBM stock with a strike price of $150. Plot the profit of this strategy, including the stock value and options, as a function of the IBM stock price in one year. Qualitatively, what is Hannah accomplishing with this strategy? What are its pros and cons? * This is in fact a specific example of a general options strategy. You might be interested in doing some research and figuring out which one it is. Getting Clever with Options Hannah owns one share of IBM stock which is currently trading at $150. She thinks that IBM stock will appreciate over the next year, but thinks long and hard about how to protect herself from possible losses. Hannah decides to write a one-year call option on IBM stock with a strike price of $165, which she sells for a $10 premium. She immediately uses the $10 to purchase a one-year put option on IBM stock with a strike price of $150. Plot the profit of this strategy, including the stock value and options, as a function of the IBM stock price in one year. Qualitatively, what is Hannah accomplishing with this strategy? What are its pros and cons? * This is in fact a specific example of a general options strategy. You might be interested in doing some research and figuring out which one it is