QUESTION 3 Suppose we bought one share of stock at $100. Also, we have a...
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QUESTION 3 Suppose we bought one share of stock at $100. Also, we have a collar on the stock with the strike of the put being $90 and the strike of the call being $115. If the put is selling at $1 and the call is selling at $0.75, then what is the maximum loss and maximum profit from the combined position above? (assuming one option covers one share of stock) maximum loss -$10 and maximum gain is $15 O maximum loss -$10.25 and maximum gain = $14.75 maximum loss -9.75 and maximum gain - $14.75 maximum loss -10.25 and maximum gain $15.25 QUESTION 4 10 poin We are given the folloing information: Stock price $50, volatility = 0.3, risk-free rate 5%, and dividend yield 2%. We just bought one share of the stock and we also write a covered call at the strike price of $60 with one year to maturity. What is the premium we collect from the covered call assuming one option covers one share of stock? What is the breakeven stock price? premium is $3.45 and the breakeven stock price is $53.45 premium is $3.08 and the breakeven stock price is $53.08 premium is $3,08 and the breakeven stock price is $46.92 premium is $3.08 and the breakeven stock price is $60

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