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Imagine that you are holding 5,000 shares of a stock currently selling at $40 a share. You are ready to sell the shares but would

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Imagine that you are holding 5,000 shares of a stock currently selling at $40 a share. You are ready to sell the shares but would prefer to put off the sale until next year due to tax reasons. If you continue to hold the shares until January, you face a risk that stock will drop in price before year-end. You decide to use a collar to limit downside risk without laying out a good deal of additional funds. January call options with a strike price of $44 are selling for $1, and January put options with a strike of $36 are selling at $2. What will be the value of your portfolio (net of the proceeds from the options) if the stock price ends up at a) $30 b) $50

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