Question 7 (15 pts) A trader holds 1000 shares of IBM stock SHORT. The trader also has $10,000 in cash. Consider the following two strategies that the trader can follow. Strategy 1: The trader holds the SHORT position of 1000 shares for one year, and invests 10,000 cash in a risk free bond for an annual return of 5%. Strategy 2: The trader buys 1000 call options on IBM with strike price X=60 that expire in one year. The price of each call option is c=5. The trader then holds 1000 IBM shares short and invests the remaining cash in the risk free bond for an annual return of 5%. For what values of IBM share price St in one year at the expiration date, does Strategy 2 prove to be the better one