Suppose you have had a stock for a long time and are not, Financial Management

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Suppose you have had a stock for a long time and are not

Suppose you have had a stock for a long time and are not happy with the recent cut in dividend with that stock. You want to increase your income from holding that stock. The stock is trading at $47.28. The risk-free interest rate is 1.5%, and options with a 3-month maturity are selling at:

Strike Call Put

45 3.20 0.75

50 0.73 3.20

A. State how you would form an options strategy.

B. What is this strategy called?

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Financial Management: Suppose you have had a stock for a long time and are not

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Financial Management: Suppose you have had a stock for a long time and are not

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