MS Share prices shown below at the close of every 10 days. Assuming an investor owns...

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MS Share prices shown below at the close of every 10 days. Assuming an investor owns 10,000 shares of MS on Day 0. Design a strategy to maximize the net value of the portfolio. Assume: Call/ Put option contracts are $20 / $18, respectively, with strike price of $210. Day:0 210 210 10 200 210 20 210 212 30 230 215 40 240 205 50 250 195 60 260 185 Calculate equity value (no hedge: Flat) for both paths. Calculate portfolio values of each path by adding call/put options: Nc/Np: 100/0, 75/25, 50/50, 25/75, 0/100 Probability of possible market moving u/d (u+d=1): 1.0/0, 0.75/0.25, 0.50/0.50, 0.25/0.75, 0/1.0 Plot the results. MS Share prices shown below at the close of every 10 days. Assuming an investor owns 10,000 shares of MS on Day 0. Design a strategy to maximize the net value of the portfolio. Assume: Call/ Put option contracts are $20 / $18, respectively, with strike price of $210. Day:0 210 210 10 200 210 20 210 212 30 230 215 40 240 205 50 250 195 60 260 185 Calculate equity value (no hedge: Flat) for both paths. Calculate portfolio values of each path by adding call/put options: Nc/Np: 100/0, 75/25, 50/50, 25/75, 0/100 Probability of possible market moving u/d (u+d=1): 1.0/0, 0.75/0.25, 0.50/0.50, 0.25/0.75, 0/1.0 Plot the results.