5. The current price of a share of Pfizer Inc. (Pfizer) stock is $29.22. You establish a collar by (i) purchasing a November 2014 put option on Pfizer stock with a strike price of $28.00 with a premium of $0.35, (ii) writing a November 2014 call option on Pfizer stock with a strike price of $31.00 and earning the premium of $0.14, and (3) purchasing an equivalent number of shares of the underlying stock. a. Graph per share proceeds and profits on the stock that you purchase. What are your maximum per share proceeds and profit? What is your maximum per share loss? What is the break-even price of a share of Pfizer stock? b. Graph long put (the put that you purchase). For what range of prices of the underlying asset will you exercise the put? What are your maximum per share proceeds and profits? What is your maximum per share loss? What is the break-even price of a share of Pfizer stock? c. Graph your per share proceeds and profits on the short call (the call that you write). For what range of prices of the underlying asset will the call be exercised? What are your maximum per share proceeds and profits? What is your maximum per share loss? What is the break-even price of a share Pfizer stock? d. Graph per share proceeds and profits on the collar. For what range of prices of the underlying asset are profits positive? What are maximum per share proceeds and profits? What is the maximum per share loss? What is the break-even price of a share of Pfizer stock? e. What are the advantages and disadvantages of the collar relative to the protective put? 5. The current price of a share of Pfizer Inc. (Pfizer) stock is $29.22. You establish a collar by (i) purchasing a November 2014 put option on Pfizer stock with a strike price of $28.00 with a premium of $0.35, (ii) writing a November 2014 call option on Pfizer stock with a strike price of $31.00 and earning the premium of $0.14, and (3) purchasing an equivalent number of shares of the underlying stock. a. Graph per share proceeds and profits on the stock that you purchase. What are your maximum per share proceeds and profit? What is your maximum per share loss? What is the break-even price of a share of Pfizer stock? b. Graph long put (the put that you purchase). For what range of prices of the underlying asset will you exercise the put? What are your maximum per share proceeds and profits? What is your maximum per share loss? What is the break-even price of a share of Pfizer stock? c. Graph your per share proceeds and profits on the short call (the call that you write). For what range of prices of the underlying asset will the call be exercised? What are your maximum per share proceeds and profits? What is your maximum per share loss? What is the break-even price of a share Pfizer stock? d. Graph per share proceeds and profits on the collar. For what range of prices of the underlying asset are profits positive? What are maximum per share proceeds and profits? What is the maximum per share loss? What is the break-even price of a share of Pfizer stock? e. What are the advantages and disadvantages of the collar relative to the protective put