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An investor initiates a strategy of writing covered call. In the strategy, the investor sells a 2-year European call on a non-dividend-paying stock. The call
An investor initiates a strategy of writing covered call. In the strategy, the investor sells a 2-year European call on a non-dividend-paying stock. The call has the strike price of$250 and currently sells for$20.Simultaneously, the investor buys the underlying stock that currently sells for$265. Find a range of stock prices in year 2 that result in a positive profit to the investors.
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