Helen makes a short sale of 1000 shares of XYZ company stock, each sold at 70 shares, and has a commitment to repurchase them within a year. She has a commitment to repurchase the shares in two years. The money from the short sale is used to invest in a coffee shop, which she expects to generate a 4% effective semiannual return.

A margin requirement of 45% is requested, which is deposited in a margin account that pays an interest rate of 3.5%.

Cap acquires a Call with an agreed price of 75, the premium per share is 7.283 and an annual interest rate of 4% is applied.

a) Determine Helen's gain

b) Tabulate the profit for a market price of 40,50,60,70,80 and 90.

c) Graph the profit