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Johnson & Johnson (ticker.JNJ) is traded at $172.21 per share when Nancy sold a call option today. The call premium is $3.05 and the exercise
Johnson \& Johnson (ticker.JNJ) is traded at $172.21 per share when Nancy sold a call option today. The call premium is $3.05 and the exercise price is $180 The option will be expired on Jan. 20 , 2024 . a. What is Nancy's expectation about JNJ's price between now and expiration date? Also, state reasons why sellling a call is beneficial given her expectation of the price movement. b. What are Nancy's maximum profit and maximum loss? c. Show the profit/loss if, at the expiration date, the JNJ price is (1) $150,(2)$182,(3)$190
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