P un Sianus On May 1, 2020, you found the following information about ABC stock and its options expiring in November 2020. You can use the last price of call/put options in the option premium. The last price listed is for the right to buy sell one share of ABC (34 points) Company Last sale price ABC Inc. $100 Options for ABC Inc. Expiration date: Nov-2020 Call Strike price Put 95 105 Investment criteria: (1), you believe ABC price will increase and you want to take a bullish strategy (profit increases with increasing stock price). (2). You want to profit as much as possible (ie, you don't want the profit to be capped); (3). However, you don't want to lose more than $10/share at the end; (4). you plan to purchase one share of ABC and hold it until Nov 2020 Please type your answers to the following questions: (a). Which strategy will you use (consider only strategies covered in class)? (3 points) (b). How to construct the portfolio mentioned in (a) (ie what to buy or sell to construct the portfolio)? (points) (c). What's the main feature of the strategy mentioned in (a)? (3 points) (d). For the strategy you choose in (a), what are the profits (expressed in formula) when X and S X respectively? (6 points) (for special symbols in the formula, you can just type ST, SO, X, PO, CO and etc.) (e). Calculate the portfolio profits at all possible future stock prices with EACH of the possible options (don't need to consider options not included in the portfolio) (e.g. by using 95 call option, profit-St-Sif St 95, profit -10 if Sp-95) (plug in all known variables, and leave unknown variable's symbol in the equation). (12 points) (1). Which option(s) are you going to use and why? (3 points) (). What is the cost to construct a strategy in (a) by using the option() in ( (in dollar amount)? (4 points) Save All Answers Close Window Save and Submit Chick Save and submit to see and submit. Click Save All Answers to save all