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please answer all parts of question 1 1. Consider a call option with one year time remaining to expiration and the table below Time Stock
please answer all parts of question 1
1. Consider a call option with one year time remaining to expiration and the table below
Time | Stock Price | Call Exercise Price | Call premium |
Now | 33 | 30 | 5 |
Later | 29 | 30 | 2 |
Provide the result of the covered call writing strategy in the table below in the context of marking to market only.
Time | Stock Position | Call Option Position | Net or combined position |
Now | Action:
| Action:
| Result:
|
6 months later | Action:
| Action:
| Result:
|
Results in $
|
|
| |
Results in %
|
|
|
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