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Imagine that you are holding 5 0 0 0 shares of stock currently selling a $ 4 0 per share. You are ready to sell

Imagine that you are holding 5000 shares of stock currently selling a $40 per share. You are ready to sell the shares but would prefer to put off the sale until next year for tax reasons. If you continue to hold the shares until January, however you face the risk that the stock will drop in value before the year and you decide to use a color limit downside risk without laying out a good deal of additional funds January. Call options with a strike price of $45 are selling at two dollarsand January put with a strike price of $35 are selling at three. Assume that you had the entire 5000 chairs of sock stock what will be the value of your portfolio and January if the stock price ends up at 30? What will be the value of the portfolio in January if the stock price ends up at $40 what will be the value of your portfolio in January if the stock price ends up at $50?

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