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On March 13, 2020 a trader wrote a call option priced at $4 on Google stock with an exercise price of $1,100, with maturity on

On March 13, 2020 a trader wrote a call option priced at $4 on Google stock with an exercise price of $1,100, with maturity on April 13, 2020.

a) The trader used a stop-loss strategy with the plan to buy shares if the stock price exceeds the strike by 5% and to sell shares if the stock price goes below 95% of the strike price. Estimate the profit/loss at maturity.

b) Estimate the profit/loss at maturity if the trader uses the naked strategy.

c) Estimate the profit/loss at maturity if the trader uses the covered strategy. Specify which strategy is the most profitable in this scenario.

please answer. thanks

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