A collar is established by buying a share of stock for $$46,$ buying a $6-$month put option with exercise price $$43,$ and writing a $6-$month call option with exercise price $$49.$ On the basis of the volatility of the stock, you calculate that for a strike price of $$43$ and expiration of $6$ months, $N(d_1)=0\mathrm{.}6974,$ whereas for the exercise price of $$49,N(d_1)=0\mathrm{.}6504.$

Required:

a$.$ What will be the gain or loss on the collar if the stock price increases by $$1?$

b$.$ What happens to the delta of the portfolio if the stock price becomes very large?

c$.$ What happens to the delta of the portfolio if the stock price becomes very small?

Complete this question by entering your answers in the tabs below.

Requirnat B

Required C

Required $B$

What will be the gain or loss on the collar if the stock price increases by $$1?$

Note: Round your answer to $2$ decimal places.

$\backslash$table$[[$Collar$,$gain,$$00$