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for tata communications stock preferably one of the deep out of the money call options. Using the selected call option create a Covered Call strategy.
for tata communications stock preferably one of the deep out of the money call options. Using the selected call option create a Covered Call strategy. You should specify why you chose a particular strike price for your strategy.
Build a financial model using Microsoft Excel that addresses the following questions:
a Build a table that depicts the payoff diagram of the above strategy. Use Excel feature called "Data table" so as to efficiently build this table.
b Plot the payoff diagram for this strategy in Excel using appropriate charting techniques
c Build a table that depicts the Profit and Loss diagram of the above strategy. Again, be sure to use Excel feature called "Data table" so as to efficiently build this table.
d Plot the Profit and Loss diagram for this strategy in Excel using appropriate charting techniques
e What is the maximum profit of this strategy?
f What is the maximum loss of this strategy?
g What is the breakeven point of this strategy?
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