Currently the stock is selling

Assignment Help Financial Management

Reference no: EM13725260

Currently the stock is selling for $38.25.

A call to buy the stock at $40 is selling for $3.38 and a put to sell the stock at $35 is selling for 1.94.

How could you use a collar to reduce your risk of loss from a decline in the price of the stock?

Verify that the collar does achieve this objective.

Reference no: EM13725260

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