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You are convinced that AngloGold Ashanti stock listed on the JSE is going to break far out of that range in the next 5 months.

You are convinced that AngloGold Ashanti stock listed on the JSE is going to break far out of that range in the next 5 months. You do not know whether it will go up or down, however. The current price of the stock is R100 per share, and the price of a 5-month call option at an exercise price of R98 is R8. The risk-free interest rate is 9% per year. What would be a simple options strategy to exploit your conviction about the stock prices future movements and what will be the total cost of this strategy?

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