Using data from fact set or other sources like yahoo finance:

a.At what price would you purchase M stock? (1 point)At what price would you short it? (1 point)Justify your answer with whatever statistics you feel will make your argument more convincing. (14 points)

b.At what price would you purchase KSS stock? (1 point) At what price would you short it? (1 point)Justify your answer with whatever statistics you feel will make your argument more convincing. (14 points)

c.At their current stock prices, which of the two stocks offers a more attractive investment opportunity? (1 point) Justify your answer with whatever statistics you feel will make your argument more convincing. (15 points)

d.Using the options pricing information in the Excel file, in what ways might you consider expressing your opinions from (a) through (c) above using options (3 points)? Justify your answer(s) (8 points).

e.If you were the CEO of a market-neutral hedge fund, how would you incorporate your opinions in (a) through (d) above into your portfolio? (4 points) Justify you answer with statistics and be sure to explain how you would maintain the market neutrality of the overall portfolio. (8 points)