Intro

You have bought $1$ share of stock for $$41\mathrm{.}54$ and sold $($wrote$)1$

call option on the same stock. Such a portfolio is called a

covered call. The option has an exercise price of $$50,$ a price

$($premium$)$ of $$1\mathrm{.}84,$ and expires in $5$ months.

Part $1$

What is your profit from buying the stock only if the stock price

is $$20$ in $5$ months $($in $ $)?$

Part $2$

What is your profit from selling $($writing$)$ the option if the stock

price is $$50$ in $5$ months $($in $ $)?$

Part $3$

What is your total profit if the stock price is $$100$ in $5$ months

$($in $$)?$