Read the scenario below and then answer the questions that follow. An investor is speculating on Company ZZ shares. The shares are currently trading at R140 per share. The investor believes that Company ZZs shares will experience a bearish run, and she wants to use call options to take advantage of this. She finds that a call option on Company ZZs shares, with an exercise price of R120, is selling at a premium of R400. She decides to buy the call option and simultaneously writes another call option on Company ZZs shares, with an exercise price of R105, at a premium of R600. One call option is made up of 100 shares. Hint: show all calculations when answering the following questions. Round off your final answers to two decimal places. 5.1 Identify the option strategy used by the investor. (1) 5.2 What is the initial net gain (or cost) on the position? (1) 5.3 What is the maximum loss on the position? (2) 5.4 What is the maximum profit on the position? (1) 5.5 What is the breakeven share price for the position? (2) 5.6 What should the investor do to retain the same profile of the option strategy in the scenario, but by using put options instead?