Strategy for sandisk

Question

Problem:

Mr. Jones is a 53 year old owner/manager for a large food processing company that is worth $75 million. He has amassed a personal fortune that is worth $48 million, invested as follows: 20% in fixed income/interest bearing securities, 45% in cash equities (stocks), 15% in real estate a 20% in cash. His stock holdings are mostly large-cap companies, more than are blue-chip type companies. His investment objectives are growth and income and his risk tolerance I low-to-moderate. Recently he approached you and stated that he wanted to become slightly more aggressive and wants to take a $1 million position in SanDisk Co. (SNDK). SanDisk is a lower cap growth company. Given what you know, offer Mr. Jones two ideas using the options Exhibit C, outlying the pros and cons and your suggestion for why he should choose one of those strategies.

This must be detailed include why one strategy is better than the other. and the benefits and cons of each stategy. There must also be a seperate strategy for just buying the stock.

SanDisk is currently trading at $50.92

		strike	price	Bid	Ask
21-04-12	call	40	12.82	12.75	12.9
21-04-12	put	40	1.89	1.87	1.92
21-04-12	call	41	12.07	12	12.15
21-04-12	put	41	2.12	2.1	2.15
21-04-12	call	42	11.32	11.25	11.4
21-04-12	put	42	2.37	2.34	2.39
21-04-12	call	43	10.57	10.5	10.65
21-04-12	put	43	2.63	2.6	2.66
21-04-12	call	44	9.88	9.8	9.95
21-04-12	put	44	2.91	2.89	2.93
21-04-12	call	45	9.18	9.1	9.25
21-04-12	put	45	3.22	3.2	3.25
21-04-12	call	46	8.52	3.5	3.6
21-04-12	put	46	3.55	3.5	3.6
21-04-12	call	55	3.85	3.8	3.9
21-04-12	put	55	7.85	7.8	7.9
21-04-12	call	57.5	2.96	2.93	2.99
21-04-12	put	57.5	9.48	9.4	9.55
21-04-12	call	60	2.22	2.2	2.25
21-04-12	put	60	11.27	11.15	11.4
21-04-12	call	65	1.2	1.18	1.22
21-04-12	put	65	15.23	15.1	15.35