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QUESTION 9 On May 1, 2020. you found the following information about BCD stock and its options expiring in November 2020. You can use the

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QUESTION 9 On May 1, 2020. you found the following information about BCD stock and its options expiring in November 2020. You can use the last price of caput options as the option premium share of BCD (34 points) Company Last sale price ABC Inc. S200 Options for ABC Inc Expiration date: Nov-2020 Call Strike price 195 205 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 proft as much as possible de 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 strategias covered in class points) b) How to construct the portfolio mentioned in (a) (e. what to buy or sell to construct the portfolio)? (3 points) (c). What's the main feature of the strategy mentioned in (a)? 3 points) For the strategy you choose in (a) what are the profits (expressed in formula) whenST X and SyX respectively? (5 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) (eg, by using 195 callop ST195) plug in all known variables, and leave unknown variables symbol in the equation) (12 points) Which options) are you going to use and why? (3 points) (9) What is the cost to construct a strategy in (a) by using the option() in (1) in dollar amount)? (4 points) TTT Anal 320 T E 22 Chel Save and Submittee and submit Chick Save all too dit

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