Question: part 3 under what scenerio strategy B out perform A please answer 3 parts they are related Question 2. (This question has three parts: 1,

part 3 under what scenerio strategy B out perform A
please answer 3 parts they are related
Question 2. (This question has three parts: 1, II and III) Assume current stock price is $30, analyze and compare the following two trading strategies: (a) One share and a short position in two call options and (b) One share and a short position in four call options. All options have same strike price $32 and same expiration. Each option has a value $1. Part I. Showing the variation of an investor's profit and loss at option expiration by using the provided table: ST 32 Strategy (a) Long one share Short two calls Payoff Profit Strategy (b) Long one share Short four calls Payoff Profit (4 Marks) Part II. List the maximum profits and its corresponding stock prices, and break-even points for both strategies. (4 Marks) Question 2 continues next page
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