The shareprice of Company stock currently is $33.60 . You have $9,000 available for investing in the good fortunes of the Company. Instead of buying the stock, however, you pursue a portfolio insurance strategy that invests in a money market account earning 7.50% compounded monthly. Also, you invest in call options on the Company stock with a strike of $40.00 and option price of $5.60 (assume you can buy fractions of options). Your allocation assures you that, even in a worst-case scenario, you will not lose more than $2,000 of your original principal. Suppose that at the conclusion of your 21 month investment horizon the Company stock has risen 35%. Find the ending wealth for the investment strategy.

a. $8,046

b. $10,710

c. $8,851

d. $11,781

e. $9,736