Question: Using only put options, what strategy would you use based on the clients needs? Draw the profit profile of your strategy You have been provided

Using only put options, what strategy would you use based on

Using only put options, what strategy would you use based on the clients needs? Draw the profit profile of your strategy

You have been provided with the following information on options related to Microsoft (NASDAQ:MSFT). An investor believes that the share price will increase (but not by more than 5%). She has requested that you assist her with a strategy that will take advantage of the share price increase that she anticipates using options but would like to minimise the absolute cost of the strategy. Option Price_Today Exercise Price (X) Premium Call 1 79 75.05 4.6215 Call 2 79 82.95 0.4345 Put 1 79 75.05 0.5135 Put 2 79 82.95 4.3055

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