Use the following information to answer questions 3 and 4. Two investment firms, Titan Investments and Oshkosh Investments, have purchased 100,000 shares of Packer stock at a stock price of $24 per share. Thus, both investment firms currently own a substantial amount of Packer stock. The price of Packer stock has been very volatile with 52-week high and low of $10 and $38, respectively. While both investment firms will sell the Packer stock in six months, they are considering different investment strategies. Oshkosh Investments may pursue a covered call strategy while Titan Investments may pursue a protected put strategy. Call options on Packer stock have a $2 premium, a $27 exercise price, and expire in six months. Put options on Packer stock have a $3 premium, a $24 exercise price, and expire in six months.

3.The fund managers at Titan Investments need you to provide them with more information so they can make a decision on whether or not to pursue the protected put strategy.

a.Use the Packer stock prices at expiration to calculate Titan Investments' profit/loss per share without the protected put strategy ... assume Titan Investments does not pursue the protected put strategy. Show your calculations and report your answers in the table.

b.Use the Packer stock prices at expiration to calculate Titan's Investments' profit/loss per share with the protected put strategy ... assume Titan Investments does pursue the protected put strategy. Show your calculations and report your answers in the table.

c.Report in the table whether the option on Packer stock is in-the-money (ITM), at-the-money (ATM), out-of-the-money (OTM), or cannot be determined (CBD).

Stock price at Titan's profit/loss per share Titan's profit/loss per share WITH a ITM, ATM, expiration WITHOUT a protected put strategy protected put strategy OTM $21 31 32 33 34 35 36 37 38 39 40 41 42 49ITM, Stock ATM, price at Oshkosh's profit/loss per share Oshkosh's profit/loss per share expiration WITHOUT a covered call strategy WITH a covered call strategy OTM, CBD $21 31 32 33 34 35 36 37 38 39 40 41 42 49