Calculate a collar’s terminal band and net credit

Reconcile the original initial cash

The stock costs 100, the put costs 3 and the written call receives 4. Net initial outflow is 99. The option-only premiums create a credit of 1, not a zero-cost option pair in this case.

Add all three terminal legs

Terminal value is S+max(90−S,0)−max(S−110,0). It equals 90 below the lower strike, S between strikes, and 110 above the upper strike.

Subtract the correct net initial cost

Keep the modeled trade-off explicit

Simple profit lies between −9 and 11 under the stated matching-unit inputs. The capped upside and terminal floor follow from the legs; they do not remove contract administration, income, funding or suitability questions.