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Sandra Johnson, a very good client of the firm, buys 100 NFLX shares at $100.00 per share. Soon after, she is confident that some new

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Sandra Johnson, a very good client of the firm, buys 100 NFLX shares at $100.00 per share. Soon after, she is confident that some new changes announced by NFLX will result in poor performance over the following months. She would like to add one put option (with expiration in 6 months) for every stock that she holds, so that the downside risk is eliminated. You suggest that she may as well simultaneously write covered call options on each of the NFLX shares she owns (with same 6-month expiration). This way, she can cover the premium of the put options with the income received from writing the (covered) call options. Basically, she gets a "free insurance" over the 6-month period by forming a Collar Strategy. However, you warn her that if NFLX price increases substantially during this six month period, her gains would be limited, because of the written call options. She fully understands and accepts this risk. You go ahead and create the Collar using a stock, a call option and a put option. The strikes of the call and the put are 117 and 141, and both the call and the put have the same premium of 10 (as agreed with Mrs. Johnson) Three months later, Mrs. Johnson is watching the news and realizes that NFLX shares are being traded at 174. She asks you to calculate the total profit/loss of her portfolio Please round your answer to the nearest three decimals. The premium of the call and the put may adopt values that are implausible for some combinations of stock and strike values. This occurs given that this question assigns random values to each variable

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