Two investment firms, Kunkel Investments and Coates Investments, have purchased $50,000$ shares of Badger stock at a stock price of $$50$ per share. Thus, both investment firms currently own a substantial amount of Badger stock. The price of Badger stock has been very volatile with $52-$week high and low of $$18$ and $$88,$ respectively. While both investment firms will sell the Badger stock in six months, they are considering different investment strategies. Kunkel Investments may pursue a covered call strategy while Coates Investments may pursue a protected put strategy. Call options on Badger stock have a $$3$ premium, a $$54$ exercise price, and expire in six months. Put options on Badger stock have a $$4$ premium, a $$51$ exercise price, and expire in six months.

The fund managers at Kunkel 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$.$ Use the Badger stock prices at expiration to calculate Kunkel Investments$$ profit$/$loss per share with a long stock position only $...$ there is no option involved in this calculation. This question assumes Kunkel Investments DOES NOT pursue the covered call strategy. Show your calculations and report your answers in the table.

b$.$ Use the Badger stock prices at expiration to calculate Kunkel Investments$$ profit$/$loss per share with the covered call strategy $...$ assume Kunkel Investments DOES pursue the covered call strategy. Show your calculations and report your answers in the table.

C$.$ Explain why Kunkel Investments is considering a covered call strategy rather than a protected put strategy.

See attached photo for the table.

Show calculations$/$ equations used to arrive at the anwser.