You currently have a position on a collar, which is a combination of a long stock and a long put and a short call on the same stock. The excise price is $30 for the long put and $40 for the short call. You purchased the stock at $35. You paid a premium of $2 for the long put and received a premium of $1 for the short call. Both options have the same expiration date.If the stock price is $25, what is your net income?

Select one:

a. $5

b. $-5

c. $-4

d. $6

e. $-6