A collar is established by buying a share of stock for $45, buying a six-month...
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Finance
A collar is established by buying a share of stock for $45, buying a six-month put option with exercise price $38, and writing a six-month call option with exercise price $52. Based on the volatility of the stock, you calculate that for an exercise price of $38 and maturity of six months, M(d1) 0.7314, whereas for the exercise price of $52, Nd0.6192 What will be the gain or loss on the collar if the stock price increases by $1? (Input the amount as a positive value. Round your answer to 3 decimal places.) (Click to select" ) of $
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