A collar established:
Purchasing 100 shares of stock currently selling at $ 48 per share
Purchasing one put option with exercise price $ 45 for $2
Writing a call with exercise price $ 50 for $3
What are the profit/loss profile of these positions at the expiration of the options for various
prices of the stock? Use the following Table.
 

Profit on the
Price of the Stock	Stock	Call	Put	Net profit
$60
55
50
48
45
40
35

Answer rating: 100% (QA)

ANSWER To determine the profitloss profile of the collar strategy at the expiration of the options for various prices of the stock we need to consider ... View the full answer