You wish to hedge against price movements on the Innscor stock but you are not sure whether the price will move up or down. Your stockbroker has given you the following information. a) Given the information above, which option strategy would you use? [1 mark] b) Explain how the option strategy you selected in (a) works. [3 marks] c) Construct a net profit/loss profile for your option strategy given that the underlying prices of the stock over time are 120c, 135c, 140c, 155c, 165c, 170c and 190c. [7 marks] d) Comment on your results in part (c) above. [2 marks]