Miranda wants to add 500 shares of Apple common stock to her portfolio this year. She could buy the stock today. However, she is concerned about the risk that the stock might fall in price in the near future. At the same time, she would like to benefit from any gains should the price rise. Thus, she plans to implement the strategy using call options to protect against downside risk for a future purchase. (Hint: see Section C in Lecture 7A.)

Miranda plans to delay the purchase of Apple stock for 2 months.

Here is the market information when Miranda implements her strategy.

• Currently, the spot price of Apple common stock is $150 per share.
• A call option on Apple common stock has 100 shares as the underlying asset.
• For call options with a strike price of $150 that expire on the future date when she plans to buy the stock, the premium currently is $8.73 per share.
• The continuously compounded, annualized risk free rate for this scenario is 2.66%.

Now "jump ahead" in time to the date when Miranda buys the Apple common stock and when the call option expires. Suppose that the price of Apple common stock is $171.54. What is Miranda's total profit or loss on her strategy?

NOTE: apply the exact formula or calculation. Do not approximate by treating the risk-free rate as zero.