Question
Consider a bond selling for $98 per $100 face value. A call option selling for $8 has an exercise price of $105. Answer the following
Consider a bond selling for $98 per $100 face value. A call option selling for $8 has an exercise price of $105. Answer the following question about a covered call.
Determine the value of the position at expiration and the profit if the price of the bond at expiration is $110:
| A | $15 | |
| B | $5 | |
| C | $10 | |
| D | -$5 |
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Public Administration And Law
Authors: David H Rosenbloom, Rosemary O'Leary, Joshua M Chanin
3rd Edition
1439803986, 9781439803981
