An investor writes a call option priced at ($3) with an exercise price of ($100) on a

Question:

An investor writes a call option priced at $$3$ with an exercise price of $$100$ on a stock that he owns. The investor paid $$85$ for the stock. If at expiration of the call option the stock price has risen to $$110,$ the profit for the investor’s position would be closest to

a. $$3$.

b. $12.

c. $18.

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