1. In a collar trading strategy, the strike price of the put $45, and the strike price of the call is $75. The put and call premiums are $1.50 and $2.50 respectively. If the stock price at the maturity of the options is $80, what is the net payoff from the strategy?

A.Loss of $4

B.Loss of $5

C.Loss of $6

D.Gain of $1

E.Gain of $2

Gross Payoff of Collar

= Value of stock + Long Put Payoff + Short Call Payoff

Net Payoff of Collar = Gross Payoff - Put Premium + Call Premium

Is this the correct formula to use? i cant seem to get the answer