Question: Q5. Construct a collar using the following January 160 put option with current stock price of 165: Strike Calls Puts 160 12.50 5.50 165 8.50

Q5. Construct a collar using the following January 160 put option with current stock price of 165:

Strike Calls Puts

160 12.50 5.50

165 8.50 7.50

170 1.00 9.50

Find the maximum profit, maximum loss, break-even point for the collar for following stock prices, 155, 161, 166, 175.

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