Problem

7. Microsoft is currently trading at $26. You expect that prices will increase but not ris...

7. Microsoft is currently trading at $26. You expect that prices will increase but not rise above $28 per share. Options on Microsoft with strikes of $22.50, $25.00, $27.50, and $30 are available. What options portfolio would you construct from these options to incorporate your views?

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Solutions For Problems in Chapter 8