Options: (first part)Given the stock price trend, you ( Should/ should not) exercise the call option because it is (in the money / Out of the money).

(Second Part) and stock prices throughout the quarter, you ( Should/ should not) exercise the put option because it is (in the money / Out of the money/ At the monety).

Thanks :)

4. Speculating with stock options Suppose the following graph represents the stock price of Bluebell Enterprises throughout the four quarters in 2019. Bluebell Enterprises Stock Price (2019) 100 90 80 70 60 50 40 30 20 10 0 > 2 2 3 5 Suppose you purchased 3,500 shares at the beginning of January (the beginning of Quarter 1) at the market price. If you're a perfect market caller and sell the shares at their highest value prior to Quarter 2, your profit will be s Now suppose you purchased American-style put options at the beginning of Quarter 1) for $5 per share with an exercise price of $35 that expires at the end of March. Given the stock price trend, you exercise the call option because it is . As a result, your profit will be $ (Hint: If you exercise the put option, assume you immediately purchase shares, at the lowest price in Quarter 1, that can then be resold using the put option.) Now suppose the stock price of Bluebell Enterprises throughout the four quarters in 2019 actually looks as follows: Given each of your answers in this problem, and that investors are perfect call makers, what conclusion can be made? Check all that apply. When an investor thinks the price of a stock will decrease, purchasing put options will result in a higher profit (or lower loss) than purchasing the stock. When an investor thinks the price of a stock will increase, purchasing put options will result in a higher profit (or lower loss) than purchasing the stock. When an investor thinks the price of a stock will decrease, purchasing put options will result in a lower profit (or greater loss) than purchasing the stock. When an investor thinks the price of a stock will increase, purchasing put options will result in a lower profit (or greater loss) than purchasing the stock