You are saving for a house, and you would like to invest your money for the next year to reach your savings goal. You are unwilling to risk losses beyond a certain level, so you decide to "collar" your stock position. If you invest your money by (a) buying 200 shares of stock at $100 per share, and then hedge it with (b) 200 put options with an exercise price of $100 and (c) writing 200 calls with an exercise price of $110 a. Graph the payoff diagram for the collar described above (3 marks) b. What are your maximum and minimum payoffs at expiration? Draw a payoff table. (4 marks) C. Explain a pro and a con of this position. (1 marks)