Exhibit 16.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider the following information on put and call options for a common stock.

Strike Price	Put Price	Call Price
$22.50	$2.65	$1.85

Refer to Exhibit 16.7. Calculate the net value of a covered call position at an expiration stock price of $20.

a. $4.45

b. $18.15

c. $1.85

d. $21.85

e. $24.35