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Please help me with this thank you Liz buys a covered call, which is to say she buys one share of Koca-Loka long for $10.50
Please help me with this thank you
Liz buys a covered call, which is to say she buys one share of Koca-Loka long for $10.50 and at the same time she buys a call on Koca-Loka that has an exercise price of $11.50 and a premium of $1.65. What is the combined profit or loss on the covered call if at the time of expiration Koca-Loka is trading at $8.10 per share? Assume that she gets out of her long position at the same time her option expires.
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