Synthetic positions are financial positions that mimic another position but use different instruments to do it$.$ A short sale of a stock is where we borrow shares under the expectation that their price will drop. If the the price drops, we buy the shares back, repay the loan and make a profit. In doing so$,$ we are financially obligated for the full value of the shares and if the price goes up$,$ we stand to lose a lot of money. A synthetic short sale mimics the short with options but with much lower financial risk. A synthetic short is created with a long put and short call on the same stock with the same strike price and expiration date. Bank of America stock is currently trading at $$21\mathrm{.}75$ per share. A May $$25$ call is trading at $$2\mathrm{.}75$ and a May $$25$ put is currently trading at $$2\mathrm{.}25.$ If Bank of America closes at $$28,$ a $100$ share long stock position at $$21\mathrm{.}75$ would:

Question $1$ options:

gain $$625$

gain $$250$

lose $$225$

lose$$1100$