McDonalds stock (MCD) is trading at $113.50 on November 24, 2020. An investor is bullish on MCD for the next 3 months. He is considering using options to trade MCD with February 2021 expiration. Below, the options available on MCD for February:

Strike	CALL (premium)	PUT (premium)
110	$6.20	$2.60
115	$3.30	$4.60

1. Which 2 options positions could he use to satisfy a bullish expectation for both strikes? Only indicate the long and short positions for each type of option and strike.

2. Now, calculate the P&L per contract for each one of these 4 options positions (Long Call, Short Call, Long Put and Short Put) assuming that MCD stock will be trading at $121 at February expiration. What would be the impact on his brokerage account if he/she were trading 3 contracts in each option position. Show the formulas and calculations. (Here, no P&L diagrams, only calculations!)

3. Now, assuming the MCD would be trading at $104 at expiration of these 4 options positions, redo again the calculations of 2 for the 4 options positions. Use 3 contracts for each one.

4. Draw the P&L diagrams per contract indicating the breakeven prices, maximum loss and maximum gains in each option position as seen in class, and put the $121 and $104 prices of MCD on this diagrams. (long Call, short Call, long Put and short Put).