Question: pls help.i will give thumbs give if you solve. do not copy from other chegg answer You are saving for a house, and you would

 pls help.i will give thumbs give if you solve. do not

pls help.i will give thumbs give if you solve. do not copy from other chegg answer

You are saving for a house, and you would like to invest your money for the next year to reach your savings goal. You are unwilling to risk losses beyond a certain level, so you decide to "collar" your stock position. If you invest your money by (a) buying 200 shares of stock at $100 per share, and then hedge it with (b) 200 put options with an exercise price of $100 and (c) writing 200 calls with an exercise price of $110 a. Graph the payoff diagram for the collar described above (3 marks) b. What are your maximum and minimum payoffs at expiration? Draw a payoff table. (4 marks) c. Explain a pro and a con of this position. (1 marks) You are saving for a house, and you would like to invest your money for the next year to reach your savings goal. You are unwilling to risk losses beyond a certain level, so you decide to "collar" your stock position. If you invest your money by (a) buying 200 shares of stock at $100 per share, and then hedge it with (b) 200 put options with an exercise price of $100 and (c) writing 200 calls with an exercise price of $110 a. Graph the payoff diagram for the collar described above (3 marks) b. What are your maximum and minimum payoffs at expiration? Draw a payoff table. (4 marks) c. Explain a pro and a con of this position. (1 marks)

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