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Assume that an investor holds 100 shares of stock and writes a call (covered call) on the stock for a premium of $4. In other
Assume that an investor holds 100 shares of stock and writes a call (covered call) on the stock for a premium of $4. In other words, this investor writes a covered call. The call has an exercise price of $50. What is the total value of this covered call position at the maturity of the option if the stock price is $35?
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