1st Drop Box (Should or Should Not) 2nd Drop Box (In the Money or Out the Money)

Suppose the following graph represents the stock price of Kaplin Incorporated throughout the four quarters in 2019. (?) Suppose you purchased 3,500 shares at the beginning of January (the beginning of Quarter 1 ) at the market price. If you're a perfect market caller and sell the shares at their highest value prior to Quarter 2, your profit will be Now suppose you purchased American-style put options (at the beginning of Quarter 1 ) for $4 per share with an exercise price of $35 that expires at the end of March. Given the stock price trend, you exercise the call option because it is . As a result, your profit will be . (Hint: If you exercise the put option, assume you immediately purchase shares, at the lowest price in Quarter 1, that can then be resold using the put option.)