Please help me with question 3

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Assume that you have bought calls, when price of CBA common shares drops, the simplest response that you can give is to sell your calls so as to cut your losses. On the contrary, when stock price rises, you would like to take or secure your profit. In general, there are four strategies as a follow-up response for increasing stock price (call them "follow-up actions"): 1. "Do nothing". You can continue to hold existing calls. 2. "Liquidate". You can sell the calls (close your position) to take profits. Given that you have to pay commissions by trading stocks, it is rarely to your benefit to exercise the call. Page 11 of 13 3. "Roll up". You sell the calls you are holding, pocket the original investment, and use the remaining proceeds to purchase out-of-the-money calls. 4. "Spread". You sell out-of-the-money call against your current call to create a bull spread. You wish the selling premium could cover at least the original cost of the long call. Question B3 (Monitoring Your Position). Let's use the following information for Question B3. Assume that you have bought CBA Dec 90 some time ago when the common share price was $87, the strike price of the call is $90 and each call costs you $4 (column 1). The 2nd column gives data for today's information which are self-explainable given you are taking this unit. Table 2: Updated Market (Question B3) Each of above four follow-up actions would produce different levels of risk and reward from today onwards. Use the following table as a template to compare these alternative strategies at expiration and label the best and worst strategies for each scenario. Comment on your analysis results. (Words limit: 300;15 Marks) Table 3: Strategy Comparing (Question B3)