A collar is established by buying a share of stock for $58, buying a 6month put option with exercise price $53, and writing a 6month call option with exercise price $63. On the basis of the volatility of the stock, you calculate that for a strike price of $53 and expiration of 6 months, N(d₁) = .7135, whereas for the exercise price of $63, N(d₁) = 0.6520.

a.	What will be the gain or loss on the collar if the stock price increases by $1? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

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b-1.	What happens to the delta of the portfolio if the stock price becomes very large? (Omit the "$" sign in your response.)

Delta of the portfolio approaches

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b-2.	What happens to the delta of the portfolio if the stock price becomes very small? (Omit the "$" sign in your response.)

Delta of the portfolio approaches

$