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.

A. Determine the value at expiration and the profit for your strategy under the following outcomes:

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

II. The price of the stock at the expiration of the options is $70.

B. Determine the following:

i. The maximum profit ii.

The maximum loss i

ii. The stock price at which you would realise the maximum profit

iv. The stock price at which you would incur the maximum loss