(B) Suppose a portfolio manager is holding all of her funds of $ 200 Millions in a well-diversified equity securities to track the Dow 30 Index. She is now concerned that in coming future the stock prices are likely to go down. In order to protect her portfolio, she decides to purchase a six-months out-of-the-money protective put option with an exercise price of $180 million and a commensurately lower initial cost of $ 2.0 million. Second, she decides not to pay cash for the put option; instead, she sells to the option dealer a call option with a six-month expiration and an exercise price of $205 million that also carries an initial premium of $1.5 million. The simultaneous purchase of an out-of-the money put and sale of an out-of-the-money call on the same underlying asset and with the same expiration date and market price is a strategy known as a collar agreement. You are required to: Complete the following table and transfer it to the answer sheet. Define the above underlined bold terms. i. ii. Net Option Expense Value of Value of Net Collar- Put-Option Cal-Option Protected Position Potential Portfolio Value 130 140 150 160 170 180 190 200 210 220 230 240 250 260 (B) Suppose a portfolio manager is holding all of her funds of $ 200 Millions in a well-diversified equity securities to track the Dow 30 Index. She is now concerned that in coming future the stock prices are likely to go down. In order to protect her portfolio, she decides to purchase a six-months out-of-the-money protective put option with an exercise price of $180 million and a commensurately lower initial cost of $ 2.0 million. Second, she decides not to pay cash for the put option; instead, she sells to the option dealer a call option with a six-month expiration and an exercise price of $205 million that also carries an initial premium of $1.5 million. The simultaneous purchase of an out-of-the money put and sale of an out-of-the-money call on the same underlying asset and with the same expiration date and market price is a strategy known as a collar agreement. You are required to: Complete the following table and transfer it to the answer sheet. Define the above underlined bold terms. i. ii. Net Option Expense Value of Value of Net Collar- Put-Option Cal-Option Protected Position Potential Portfolio Value 130 140 150 160 170 180 190 200 210 220 230 240 250 260