A collar is established by buying a share of stock for $61, buying a six-month put option with exercise price $55, and writing a six-month call option with exercise price $65. Based on the volatility of the stock, you calculate that for an exercise price of $55 and maturity of six months,N(d₁) = 0.7106, whereas for the exercise price of $65,N(d₁) = 0.6510.

What will be the gain or loss on the collar if the stock price increases by $1?(Input the amount as a positive value. Round your answer to 3 decimal places.)

(Click to select)

Loss

Gain

of $