Starcraft Systems, Incorporated (STAR) has sunk billions into a first of its kind interstellar spacecraft and is planning its first critical test flight for June 3 rd Today is May 10 th and STAR sells for 179 per share You currently do not own STAR Option Chain for STAR is presented below What options strategy would you employ in this situation Explain why you would use this strategy What Positions do you take to implement your strategy (ie , which contract(s), (long short, calls puts, expiration date(s), strike price(s)) How much will it cost you to employ the strategy STAR Option Chain Calls Bid Ask Puts Ask Strike Bid 7 75 5 5 4 4 3 05 1 92 1 23 29 May 29 May 29 May 29 May 29 May 29 May 14 Jun 14 Jun 14 Jun 14 Jun 14 Jun 14 Jun 8 05 6 25 4 6 3 2 2 16 1 41 10 1 8 55 7 15 5 6 4 45 3 6 172 5 175 177 5 180 182 5 185 172 5 175 177 5 180 182 5 185 1 82 2 49 3 35 4 5 5 95 7 55 2 56 3 2 4 4 4 85 6 75 8 15 1 91 2 62 3 75 4 7 6 25 7 95 3 95 8 3 6 6 6 4 65 3 45 1 99 6 1 6 95 8 3 11 95

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Question: Starcraft Systems, Incorporated (STAR) has sunk billions into a first of its kind interstellar spacecraft and is planning its first critical test flight for June

Starcraft Systems, Incorporated (STAR) has sunk billions into a first of its kind interstellar spacecraft and is planning its first critical test flight for June 3^rd. Today is May 10^th and STAR sells for 179 per share. You currently do not own STAR. Option Chain for STAR is presented below.

Starcraft Systems, Incorporated (STAR) has sunk billions into a first of

1. What options strategy would you employ in this situation? Explain why you would use this strategy.
1. What Positions do you take to implement your strategy (ie., which contract(s), (long/short, calls/puts, expiration date(s), strike price(s))?
1. How much will it cost you to employ the strategy?

STAR Option Chain Calls Bid Ask Puts Ask Strike Bid 7.75 5.5 4.4 3.05 1.92 1.23 29-May 29-May 29-May 29-May 29-May 29-May 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 14-Jun 8.05 6.25 4.6 3.2 2.16 1.41 10.1 8.55 7.15 5.6 4.45 3.6 172.5 175 177.5 180 182.5 185 172.5 175 177.5 180 182.5 185 1.82 2.49 3.35 4.5 5.95 7.55 2.56 3.2 4.4 4.85 6.75 8.15 1.91 2.62 3.75 4.7 6.25 7.95 3.95 8.3 6.6 6 4.65 3.45 1.99 6.1 6.95 8.3 11.95

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