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On December 21, 2020, you purchased 100 shares of ABC company at Sll per share. You plan to sell your shares on December 21, 2021

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On December 21, 2020, you purchased 100 shares of ABC company at Sll per share. You plan to sell your shares on December 21, 2021 and are concerned about downside risk. A put option on ABC stock with an exercise price (K) of S40 is currently priced (P) at $2 per share. Also, two call options on ABC stock with exercise prices (K) of S40 and $65 are priced (C) at $2.5 and $1.50 per share, respectively. All options expire on December 21, 2021. What will be net profit/loss per share on a covered call (use K=$40 call) if the stock price is $100 per share? O A. $31.5 OB. $41.5 OC. $11.5 O D. $1.5

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