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2. Option strategy (20 points) a. You buy 1,000 shares of Sunbeam at $11.13 and write 10 June call contracts at a premium of $4.38

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2. Option strategy (20 points) a. You buy 1,000 shares of Sunbeam at $11.13 and write 10 June call contracts at a premium of $4.38 per share with an exercise price of $11.00. Assume the stock price at expiration is ST: Write down the profit to this strategy as a function of St. Draw the profits chart of this strategy. What is the maximum gain and loss of this strategy? b. If the stock goes to $20 at expiration and assume the calls are exercised, what is your percentage return

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