As an executive, you received stock options that you recently exercised. However, you cannot legally sell the stock for the next six months. Currently the stock is selling for $38.25. A call to buy the stock at $40 is selling for $3.38 and a put to sell the stock at $35 is selling for $1.94. How could you use a collar to reduce your risk of loss from a decline in the price of the stock? Verify that the collar does achieve its objective.