Question
An investor holds 100 shares of APPL stock, current price $100. In March the investor sells a January 120 strike call for $1. AAPL pays
An investor holds 100 shares of APPL stock, current price $100. In March the investor sells a January 120 strike call for $1. AAPL pays a $1 dividend in July and another $1 dividend in December. If APPL trades above 120 at the option expiry date, what is the investor's return for this strategy?
- A. 23%
- B. 21%
- C. 2%
- D. 3%
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
