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Angelo Martino just purchased 600 shares of AT&E at $ 62.24, and he has decided to write covered calls against these stocks. Accordingly, he sells
Angelo Martino just purchased 600 shares of AT&E at $ 62.24, and he has decided to write covered calls against these stocks. Accordingly, he sells 6 AT&E calls at their current market price of $ 5.81. The calls have 3 months to expiration and carry a strike price of $ 65.50. The stock pays a quarterly dividend of $ 0.73 a share (the next dividend to be paid in about a month).
a. If the stock rises to $65.50 a share by the expiration date on the calls, the total profit is __?
The total holding period return is___%?
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