Bill jones Inherited 5.000 shares of stock priced at $45 per share He does not want to seil the stock this year due to tax reasons, but he is concerned that the stock will drop in value before year end Bill wants to buy put at $40 strike and sell calls at $50 strike to establish a collar to protect his Inheritance January call options with a strike of $50 are quoted at a cost of $2. and January puts with a $40 exercise price are quoted at a cost of $3. If Bill establishes the collar and the stock price winds up at $35 In January. Bill's net position value including the option profit or loss and the stock Is. $195,000 $220,000 $175,000 $215,000 Suppose for problem 2, Bill decided to protect his Inheritance simply by buying January put options at a strike price of $45 selling for $4. If the stock price winds up at $35 in January, Bill's net position value including the option profit or loss and the stock would be: $195,000 $205,000 $215,000 $175,000 What combination of puts and calls can simulate a long stock investment? Long call and short put Long call and long put Short call and short put Short call and long put The common stock of the Avalon Corporation has been trading in a narrow range around $40 per share for months, and you believe it is going to stay in that range for the next 3 months. The price a 3-month put option with an exercise price of $40 is $3, and a call with the same expiration date and exercise price sells for $4. What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement? Sell a call. Purchase a put. Sell a put and a call Buy a put and a call YOU buy an 8-year $1,000 par value bond today that has a 6% yield and a 6% annual payment coupon, in 1 year promised yields have risen to 7% your 1-year holding-period return was