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Draw a profit diagram (label everything: watch my video lectures to see what my expectations are) for one covered call net position given that the
Draw a profit diagram (label everything: watch my video lectures to see what my expectations are) for one covered call net position given that the call option premium is $12.5 and an exercise price of $200. Show any breakeven points and label the maximum gain and the maximum loss (I need the exact numbers). The current stock price is $201. What would the profit be on 10,000 options if the ending stock price was $170? What would the profit be on 10,000 options if the ending stock price was $230?
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