Answer questions 26 through 28 about a collar using the March 55 call and Jun...

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Accounting

Answer questions 26 through 28 about a collar using the March 55 call and Jun 45 put options. Assume the premiums are equal 26. What is the breakeven price? a. $50 b. $55 c. $45 d. $40

27. What is the profit if the stock price at expiration is $52.50? a. $250 b. $500 c. $234 d. -$250

28. What is the maximum loss on the strategy? a. $250 b. $1000 c. $500 d. $0

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