# Question: Suppose you invest in the S R index for 1000 buy

Suppose you invest in the S&R index for $1000, buy a 950-strike put, and sell a 1050 strike call. Draw a profit diagram for this position. What is the net option premium? If you wanted to construct a zero-cost collar keeping the put strike equal to $950, in what direction would you have to change the call strike?

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