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note; These are parts of ONE question. Thank you. You buy one Microsoft January 210 call contract and one Microsoft January 210 put contract. The
note; These are parts of ONE question. Thank you.
You buy one Microsoft January 210 call contract and one Microsoft January 210 put contract. The call premium is $14.50 and the put premium is $14.00. Your highest potential loss from this position is... Enter as a dollar amount, without "$." So, $11,000 would be "11000" or "11000.00" but not "$11,000" You are bullish on Bank of America stock, but cautious, currently priced at $24 per share. So, you buy 100 shares at $24 and sell a call option ("write a covered call option") with an exercise price of $25 for which you collect $1.40 per share. You were wrong, and the company declares bankruptcy, wiping out your investment. Assuming no commissions or fees, how much money did you loseStep by Step Solution
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