The investor bouht 1000 shares of ABC stock at $80 and currently (a few days later) the share price is at $100. the investor implements a collar strategy:he buys 10 put options with a strike price of $90 at a premium of $5 and sells 10 call options for $5 with a strike price of $110. each option is on $100 shares and both options expire in one month.

At time 0, you have a portfolio that is long 1000 shares, long 10 puts and short 10 calls valued at $100,000 - cost of collar.

a) compute the cost of implementing the collar at time=0. Also compute the vale of the portfolio(shares plus collar) at time 0.

b) Compute the value of the portfolio one month from now St=0, 80, 90, 100, 110, 120.

c) What is the break even point- the point at which the portfolio retains its valu.

d)what is the max gain?

e)what is the max loss?

f)why do you thik the investor implemented collar?