The local stock index is expected to rise by 20% over the coming year. The local T-bill yield is 3%. Cool Technologies is currently trading at $40.50 per share and its beta is 2.3. You are considering buying 1,000 shares of Cool Technologies. Cool Technologies bid price is $40, and its ask price is $41. Assuming an intrinsic value of $38 per share, and the market price given in the preamble to the question, what trading strategy would you recommend?

a. Short Cool Technologies b. Buy Cool Technologies