Question: each one should have the matrix shown above and in the textbook. Every section should include all formulas shown and the answers clearly indicated you

  1. each one should have the matrix shown above and in the textbook.
  2. Every section should include all formulas shown and the answers clearly indicated
  3. you need to tell me why an investor would use the given strategy.

Construct a collar strategy.

Your put option should be 2-3 strikes below the current market price, and your call should be 2-3 strikes above the current market price. Ideally, the protection window should not be more than $20. Remember that this is a married strategy. See the discussion in the textbook if you are unsure about this. Calculate the net premium, the break-even point, the max profit, and the max loss for the strategy.Each of these four items must be clearly displayed.

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