Option Investment (20 Marks) Suppose you think WinOdettes stock is going to appreciate substantially in value in the next year. Say the stocks current price, is $200. Two call options on the stock are currently traded in the market. Both options have one year to expiration. Option one has an exercise price of $180, and is selling at a price of $30. Option Two has an exercise price of $200, and is selling at a price, of $20. With $60,000 to invest, you are considering four alternative strategies. Strategy A: Invest all $60,000 in the stock, buying 300 shares Strategy B: Invest all $60,000 in Option one, buying 2,000 options (20 contracts) Strategy C: Invest all $60,000 in Option two, buying 3,000 options (30 contracts) Strategy D: Invest all $60,000 in bullish call vertical spreads using the above mentioned two calls: Purchase of Option one and simultaneously sell Option two. Calculate & Answer: i) How many maximum contracts you can invest in the bullish call spreads as presented in Scenario D? (Hints: For each one purchase of Option one, you will simultaneously sell one Option two for the bullish call vertical spreads) (2 Marks)