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An investor who owns 1,000 shares in BHP writes covered calls with a strike price of $39 over all 1,000 shares. The call costs $0.20.
An investor who owns 1,000 shares in BHP writes covered calls with a strike price of $39 over all 1,000 shares. The call costs $0.20. What would be the total profit or loss on the covered call if BHP's share price at expiry of the option was $41?
Group of answer choices
Profit of $1800
Loss of $1800
Profit of $2000
Loss of $2000
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