Two investment firms, Kunkel Investments and Coates Investments, have purchased 50,000 shares of Badger stock at a stock price of $50 per share. Thus, both investment firms currently own a substantial amount of Badger stock. The price of Badger stock has been very volatile with 52-week high and low of $20 and $76, respectively. While both investment firms will sell the Badger stock in six months, they are considering different investment strategies. Kunkel Investments may pursue a protected put strategy while Coates Investments may pursue a covered call strategy. Call options on Badger stock have a $3 premium, a $54 exercise price, and expire in six months. Put options on Badger Packer stock have a $4 premium, a $51 exercise price, and expire in six months. The fund managers at Coates Investments need you to provide them with more information so they can make a decision on whether or not to pursue the covered call strategy. a. b. Use the Badger stock prices at expiration to calculate Coates Investments' profit/loss per share with a long stock position only... assume Coates Investments DOES NOT pursue the covered call strategy. Show your calculations and report your answers in the table. Use the Badger stock prices at expiration to calculate Coates Investments' profit/loss per share with the covered call strategy... assume Coates Investments DOES pursue the covered call strategy. Show your calculations and report your answers in the table. Stock price (S) at expiration 44 Profit/loss (S) per Profit/loss (S) per share on the long stock Profit/loss (S) per share on the call option share on the covered call C. 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Explain why Coates Investments is considering a covered call strategy rather than a