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Angelo Martino just purchased 600 shares ofAT&E at $ 62.24 , and he has decided to write covered calls against these stocks. Accordingly, he sells
Angelo Martino just purchased600shares ofAT&E at$ 62.24,and he has decided to write covered calls against these stocks. Accordingly, he sells 6AT&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$ 0.73a share(the next dividend to be paid in about amonth).
a. If the stock rises to$65.50a share by the expiration date on thecalls, the total profit is__?
The total holding period return is___%?
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