You have a client who currently owns 2,000 shares of stock at $25 per share. The client plans to start a business in one year and needs at least $45,000 to launch the operation. You propose to support her investing needs by having her write Call Options on the stock with a Strike Price of $28 per share (premium $2).

Pick the answer that best describes your supervisors opinion of your recommendation.

Group of answer choices

You have met the clients needs because her minimum account balance could be $46,000 but she still has all the upside potential.

You have met the clients needs because her minimum account balance could be $45,000 but her upside is capped at $$56,000.

You have not met your clients needs because her minimum account balance could be $4,000 but her upside is capped at $60,000.

You have not met your clients needs because her minimum account balance could be $41,000 but her upside is capped at $56,000.

None of the above