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Consider a covered call, which is a combination of a long stock and a short call on the stock. Here are the call option's parameters.
Consider a covered call, which is a combination of a long stock and a short call on the stock.
Here are the call option's parameters.
tablestrike pricetime to expiration, in years.
The stock has the following properties.
tableScurrent stock pricevolatility of stock's rate of return
The riskfree rate equals
tablerf
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