The 3-month European call option on a non-dividend paying stock with strike price of $50 is traded at $1.15, and the 3-month European put option with strike price of $40 is traded at $0.67. The current 3-month interest rate is 5% with continuous compounding, and the stock is traded at $45 a share. A trader has just bought one hundred shares of the stock and would like to hedge against stock price risk, what option positions should the investor take to guarantee the stock worth between $40 and $50 a share in 3 months? What is the cost of the hedging portfolio?