A stock is currently trading at a price of $80. You decide to place a collar on this stock. You purchase a put option on the stock, with an exercise price of $75 and a premium of $3.50. You simultaneously sell a call option on the stock with the same maturity and the same premium as the put option. This call option has an exercise price of $90.

Determine the value at expiration and the profit for your strategy under the following

1. The price of the stock at expiration of the options is $92.

2. The price of the stock at expiration of the options is $82.