Suppose that Wal-Mart current stock price is $100, and that you think a year from now the probability of the share price being $85, $110, and $130 is 30%, 60% and 10% respectively. A call option expiring in one year has an exercise price of $100 and is selling at $10. A put option expiring in one year has an exercise price of $100 and is selling at $5. Another call option expiring in one year has an exercise price of $120 and is selling at $2. With $15,000 to invest, which of the following invest strategy will give you the highest expected profit?

	a.	Buy 1,000 call options and 1,000 put options, both with strike price of $100.
	b.	Buy 7,500 call options with strike price of $120
	c.	Sell 1,875 call options with strike price of $120, and buy 1,875 call options with strike price of $100.
	d.	Buy 1,500 call options with strike price of $100

1 points