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John purchased 100 shares of XYZ stock for $52/share. He used a covered call option strategy to enhance the potential profits. Only one call option
John purchased 100 shares of XYZ stock for $52/share. He used a covered call option strategy to enhance the potential profits. Only one call option with 9 months until its expiration date on XYZ is available. This call option has a strike price of $60 and is selling for $1. If John sells this call option, what is his profit per share on the combined investment in the stock and call if the stock rises to $55 over the next 9 months?
A) $3
B) $9
C) $11
D) $4
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