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?