suppose your boss has the following bonus scheme: she gets 5000 for every dollar that the firm's share price exceeds 100 on 31/12/2010 ans she receives ADDITIONALLY 5000 for every dollar that firm's share price exceeds 150 on 31/12/2010. also, the total bonus is capped at 1 million. the payoff of the bonus scheme is equivalent to which one of the following portfolio of options? (assume all of the following call options expire on 31/12/2010).

a. long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 200.

b.long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 225.

c.long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 250.

d. none of the above

a. long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 200.

b.long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 225.

c.long 5000 calls at strike price of 100, long 5000 calls at strike price of 150 and short 10,000 calls with strike price of 250.

d. none of the above

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