Topic 1: In response to a question regarding call and put options, Celisteela Moonn, an option analyst made the following stamen:

Call options increase in value when the asset price increase, the exercise price is higher, or when the risk-free rate is higher. Put options decrease in value when the asset price is lower, the exercise price is higher, or when the risk-free rate is lower.

Celisteela Moonn's wealthy Aunt Minnie has asked Moonn to manage her large stock portfolio. Moonn would like to use options to increase Minnie's total return and also reduce her risks. Describe the types of options Moonn would buy or sell, as well as Moonn's rationale, given the following circumstances:

Topic 2: Aunt Minnie owns 10,000 shares of a large oil company common stock. Moonn believe the stock is overpriced, but Aunt won't let Moonn sell any shares because her late husband told her to never, ever sell any. How do Moon protect her Aunt from what Moonn believe is an impending price decline?

Topic 3: Moonn's analysis suggests that a technology stock is poised for a large price increase within the next year. Aunt Minnie won't agree to spend the dollars required to obtain shares but has consented to allow Moonn to spend some money on options but only because she trusts Moonn. Moonn doesn't want to disappoint her Munnie. What should Moonn do?

In your initial post:

Topic 1: Do you agree with Moonn's statement regarding call and put options? Briefly explain.

Topic 2: How does Moonn protect her aunt from what Moonn believe is an impending price decline?

Topic 3: Moonn doesn't want to disappoint her aunt. What should Moonn do?