1. Assume the purchase price of the stock (S0) does not equal the strike price of the call. The minimum profit from a covered call position is the _________.

		stock price at expiration
		strike price of the call
		call premium
		call premium minus the stock purchase price (S0)
		None of the above

2. HIVEs stock price is currently $110 and it pays no dividends. The stock price a year from now will be either $125 or $100. The interest rate is 3% per year. You sell your client a call option on HIVE with a strike price of $120 and an expiration date 1 year from now. What is the fair value of this call option?

		$1.13
		$1.85
		$2.58
		$4.61
		None of the above