Mr. Jones wants to construct a protective collar (long stock, long put, short call) on the XYZ Corporation stock. He owns 100 shares of the stock. The XYZ stock currently trades for $60 per share. Mr. Smith buys 100 put options on this stock with the strike price of $50 and sells 100 call options with the strike price of $70. Both options expire in 3 months.

Construct a payoff table for this strategy
Show on the graph how the payoff of this strategy depends on the price of the XYZ stock
In your opinion, what is the purpose of this strategy?