Mr. James Munroe is long 500 shares of ABC at 32. He is required to maintain this long position for the remainder of his life. Mr. Munroe is also short 5 ABC Jan 35 calls at 1 and short 5 ABC Jan 25 puts at 72. What is the maximum potential loss (i.e. if the stock price dropped to zero)? Note: The number of stocks written on each call/put option contract is 100 shares "calls at 1 means that the price of each call is $1.00 "puts at 12" means that the price of each put is $0.50 e.g, "short 5 ABC Jan 35 calls at 1.00" means you have sold 5 ABC call options, where each call option has 100 underlying ABC shares with an exercise price of $35 for each ABC share. The premium received for 5 ABC Jan 35 calls is $500 (i.e. $1.00 x 5 x 100) $29,250 $27,750 $2,750 $0