a) Assume you bought 100 shares of stock DEF at a price of $30/share. Now, the price has risen to $80/share. Assume 3-month 80-strike puts on DEF cost $6/share and 3-month 80-strike calls on DEF cost $7/share. If you want to fully protect your gains for the next 3 months using options, what could you do?

b) If you implement this option strategy, what would your net profit or loss be (ignoring transaction costs) if DEF falls to $50?

c) Again, assuming you implemented the option strategy, what would your net profit or loss be (ignoring transaction costs) if DEF continues to rise and goes to $100/share?

Show your work when possible by typing out the calculations.