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6. You are given: An investor short sells a nondividend-paying stock that has a current price of 44 per sbare. . This investor also writes

6. You are given: An investor short sells a nondividend-paying stock that has a current price of 44 per sbare. . This investor also writes a collar this stock consisting of a 40-strike European put option and a 50-strike European call option. Both options expire in one year The prices of the options on this stock are: Strike Price Call Option Put Option 8.42 3.86 100 50 7.42 The continuously compounded, annual risk-free interest rate is five percent Assume there are no transaction costs Caleulate the minimum and maximum profits on the overall position at expiration

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