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Bill Jones inherited 4,000 shares of stock priced at $40 per share. He does not want to sell the stock this year due to tax reasons, but he is concerned that the stock will drop in value before year-end. Bill wants to use a collar to ensure that he minimizes his risk and doesn't incur too much cost in deferring the gain. January call options with a strike of $45 are quoted at a cost of $2, and January puts with a $35 exercise price are quoted at a cost of $3. If Bill establishes the collar and the stock price winds up at $30 in January, Bill's net position value including the option profit or loss and the stock is $120,000 $112,000 $135,000 $132.000