Use the table below to answer the questions below.

The following prices are for call and put options on a stock priced at $50.25. The March options have 90 days remaining and the June options have 180 days remaining. In your profit answers below, assume that each transaction is scaled by 100, reflecting the size of option contracts.

	Calls		Puts
Strike	March	June	March	June
45	6.85	8.45	1.20	2.15
50	3.90	5.60	3.15	4.20
55	1.95	3.60	6.15	7.00

a) (10 pts) You think the stock price will end up in the $49 to $51 range around mid March. Selecting from the March call options only, which option strategy from Chapter 7 would you recommend to provide a profit from this low-volatility forecast? What would be your option transactions be to set up this spread? What would be your maximum possible profit from this strategy?

2. (10 pts) Different Scenario: You think the stock price will fall modestly and end up around $$44-$45 by mid-June. Selecting from the June put options only, what option strategy would you recommend from Chapter 7 and what would your option transactions be to set it up?

-What would be your profit, in dollars, if the stock price turned out to be $44 at option expiration?

-What is the breakeven terminal stock price for this strategy?