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Assume that you purchased 1 share of stock at a price of $10 per share. At this time, you also wrote a call option with

Assume that you purchased 1 share of stock at a price of $10 per share. At this time, you also wrote a call option with a $10 strike and received a call price of $1. If the stock trades at $40 at expiration, calculate the dollar gain or loss on this investment strategy.

a. 1 loss

b. 29 loss

c. 1 gain

d. 30 gain

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