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Answer a-c all part of this question thanks!!! Angelo Martino just purchased 700 shares of AT & E at 62.5 dollars, and he has decided
Answer a-c all part of this question thanks!!! Angelo Martino just purchased 700 shares of AT & E at 62.5 dollars, and he has decided to write covered calls against these stocks. Accordingly, he sells 7 AT & E calls at their current market price of 6.29 dollars. The calls have 3 months to expiration and carry a strike price of 64.50 dollars. The stock pays a quarterly dividend of 0.77 dollars a share(The next dividend to be paid in about a month). Determine the total profit and holding period return Angelo will generate if the stock rises 64.50 dollars a share by the expiration date the calls. What happens to Angelo's profit if the price of the stock rises to more than 64.50 dollars a share? Does this covered call position offer any protection against a drop in the price of the stock? Explain If the stock rises to 64.50 dollars by the expiration date on the calls, the total profit id
Answer a-c all part of this question thanks!!!
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