Question
ou have bought 1 share of stock for $54.24 and sold (wrote) 1 call option on the same stock. Such a portfolio is called a
ou have bought 1 share of stock for $54.24 and sold (wrote) 1 call option on the same stock. Such a portfolio is called a covered call. The option has an exercise price of $60, a price (premium) of $2.9, and expires in 5 months. Attempt 1/10 for 10 pts. Part 1 What is your profit from buying the stock only if the stock price is $20 in 5 months (in $)? 1+ decimals Attempt 1/10 for 10 pts. Part 2 What is your profit from selling (writing) the option if the stock price is $50 in 5 months (in $)? 2+ decimals Attempt 1/10 for 10 pts. Part 3 What is your total profit if the stock price is $100 in 5 months (in $)?
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