A portfolio manager has a 1,000-share position in Fairchild Industries (FI) and her target price for FI is $43. Fairchild's stock price is currently $42.50 and the portfolio manager has decided to exit the FI position because the stock is very close to the target price. She decides to use a covered call to exit the position at the target price using a call option with one month until expiration and the following details: a. Assuming that the call is in-the-money at expiration, what is the additional return (\%) generated by exiting the Fairchild Industries position via the covered call position instead of waiting to sell at $43 ? (1 point) b. What is the delta of the covered call position and what are the risks associated with exiting a position via a covered call instead of selling today at $42.50 ? ( 2 points) A portfolio manager has a 1,000-share position in Fairchild Industries (FI) and her target price for FI is $43. Fairchild's stock price is currently $42.50 and the portfolio manager has decided to exit the FI position because the stock is very close to the target price. She decides to use a covered call to exit the position at the target price using a call option with one month until expiration and the following details: a. Assuming that the call is in-the-money at expiration, what is the additional return (\%) generated by exiting the Fairchild Industries position via the covered call position instead of waiting to sell at $43 ? (1 point) b. What is the delta of the covered call position and what are the risks associated with exiting a position via a covered call instead of selling today at $42.50 ? ( 2 points)