1. Which of the following correctly calculates the maximum profit from writing a covered call? A. (ST...

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1. Which of the following correctly calculates the maximum profit from writing a covered call?

A. (ST − X) + c0 = 31.33 − 30.00 + 1.55 = 2.88 B. (ST − S0) − c0 = 31.33 − 25.00 − 1.55 = 4.78 C. (X − S0) + c0 = 30.00 − 25.00 + 1.55 = 6.55

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Derivatives

ISBN: 9781119850571

1st Edition

Authors: CFA Institute

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