tion C2. Assume that you bought some American call options on ANZ some time ago. These options expire on 17th August 2023. At the time you bought them, the common share price of ANZ was $24.45, the strike price of the call option is $24.5, and each call cost you $0.55. Today, you check the market and consider if there is a need to adjust your position. Now, you can see the market price of ANZ is $26 per share, the call option with a strike price $24.5 expiring on 17th August 2023 has increased to $1.58. You also notice that there is an actively traded American call option on ANZ with a strike price of $26.5 and the same expiration priced at $0.40. As you have seen the appreciation of stock price, you would like to take or secure your profit. In general, there are four strategies as a follow-up response to increasing stock price (known as "follow-up actions"): 1. "Do nothing". You can continue to hold existing calls. 2. "Liquidate". You can sell the calls (close your position) to take profits. 3. "Roll up". You sell the calls you are holding, pocket the original investment, and use the remaining proceeds to purchase out-of-the-money calls. 4. "Spread". You sell out-of-the-money calls against your current call to create a bull spread. Table 2: Data for Question C2 Each of the above four follow-up actions would produce different levels of risk and reward from today onwards. Use the following table as a template to compare these alternative strategies at expiration and label the best and worst strategies for each scenario. Comment on your \begin{tabular}{l|c|c|c|c} \hline ANZPriceExpiration & "Do nothing" & "Liquidate" & "Roll up" & "Spread" \\ Profit & Profit & Profit \\ \hline 23 or below & & & & \\ 24.5 & & & & \\ 24.5 & & & \\ 25 & & & \\ 25.5 & & & \\ 26 & & & & \\ 26.5 & & & & \\ 27 & & & & \\ 27.5 & & & & \\ 28 & & & & \\ 28.5 & & & & \\ \hline \end{tabular} Table 3: Strategy Comparison for Question C2