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10. The current stock price is $25. Consider the following option information. Option Strike Premium Call 1 X1= 20 C1= 6 Call 2 X2= 30
10. The current stock price is $25. Consider the following option information. Option Strike Premium Call 1 X1= 20 C1= 6 Call 2 X2= 30 Put 1 X1 = 20 Put 2 X2= 30 C2=4 P1=0.604 p2= 8.001 Work out the cost of a covered call with strike price X1. If the stock price is 25 at expiration, what is net payoff for this option strategy? 10. The current stock price is $25. Consider the following option information. Option Strike Premium Call 1 X1= 20 C1= 6 Call 2 X2= 30 Put 1 X1 = 20 Put 2 X2= 30 C2=4 P1=0.604 p2= 8.001 Work out the cost of a covered call with strike price X1. If the stock price is 25 at expiration, what is net payoff for this option strategy
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