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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:

K, X 6.00 strike price
T 0.5 time to expiration, in years.
The risk-free rate equals 6%.
rf 6%

Premium of the call= 0.84

6.45 ST Assume that the expiration date stock price is 6.45.

stocks expiration date payoff: 0.45

short call's expiration date payoff: -0.45

stock plus short call expiration date payoff: 6

Question:

1a. What is the profit of the stock?
1b. What is the profit of the short call?
1c. What is the profit of the portfolio: stock plus short call?

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