Question: 1.5. Suppose that you write a put contract with a strike price of $40 and an expiration date in three months. The current stock price

1.5. Suppose that you write a put contract with a strike price of $40 and an expiration date in three months. The current stock price is $41 and one put option contract is on 100 shares. What have you committed yourself to? How much could you gain or lose? 1.6. You would like to speculate on a rise in the price of a certain stock. The current stock price is $29 and a three-month call with a strike price of $30 costs $2.90. You have $5,800 to invest. Identify two alternative strategies. Briefly outline the advantages and disadvantages of each

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