1. Ken short-sells a share of a non-dividend paying stock at a current price 51. Anticipating that the stock price is not going to drop drastically, he also takes a short position of an 45/55-strike collar. The prices of the options on the stock are given as follows: Strike Price Call Premium Put Premium 45 7 1.5 55 3 6 Suppose all the options expire two months from now, and the continuously compounded risk-free interest rate is 3% per year. What is the maximum loss that Ken could suffer from? 1. Ken short-sells a share of a non-dividend paying stock at a current price 51. Anticipating that the stock price is not going to drop drastically, he also takes a short position of an 45/55-strike collar. The prices of the options on the stock are given as follows: Strike Price Call Premium Put Premium 45 7 1.5 55 3 6 Suppose all the options expire two months from now, and the continuously compounded risk-free interest rate is 3% per year. What is the maximum loss that Ken could suffer from