Question: Form a recommended option hedging strategy based on your 1 year target stock price. Assume you own 1000 shares of the stock at the current

Form a recommended option hedging strategy based on your 1 year target stock price. Assume you own 1000 shares of the stock at the current market price. Select either a covered call strategy or a protective put strategy. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target.

Required Information:

Intrinsic Value = $323.52

Current Market Price = $262.33

1 year Target Stock Price = $327.62

CALL OPTION

Strike Price = $232.50

Bid Price = $22.75

Ask Price = $27.25

PUT OPTION

Strike Price = $210.00

Bid Price = $0.11

Ask Price = $0.23

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