1. An investor owns 5,000 shares of a stock, $105 per share. He thinks that there is no large rise and possible drop in price. This investor decides to sell 50 December 110 call option at $4, receiving $20,000. Note: Each stock option contract provides for the right to buy or sell 100 shares of stock. December 110 call option means that the strike price of the call is 110 and it matures in December.

   If the stock price decreases from $105 to $100, the profit associated with the passive strategy is_____ and the profit associated with the covered call writing strategy is____.

   	A.	-$25,000 $20,000
   	B.	-$25,000 $30,000
   	C.	-$25,000 -$5,000
   	D.	-$25,000 $25,000