You have accumulated 800 shares of company stock because of a generous employee stock ownership plan. Today's share price is $44.50 . You use a collar to lock-in the value 8 months from now of today's stock holdings. The collar takes a long position on 800 put options with strike of 50 and per unit option price of $8.75 . Also you take a short position on 800 call options with strike of 60 and per unit option price of $3.50 . Which is the most accurate statement about the valuation effects of the collar?

	a.	The best-case outcome is that in 8 months the stocks become worth $40000
	b.	The worst-case outcome is that in 8 months the stocks become worth $48000
	c.	The initial cash flow from entering the collar today is a cash outflow of $4200
	d.	Two choices, B and C, are correct
		e. The three A-B-C choices are all correct pleas show working out!