Question 2 Source: Zura Kakushadza and Juan Andrs Serur (2018) 151 Trading Strategies Covered Call option - also know as buy-write" strategy. For this strategy, you will buy the stock and write a call option with strike /exercise price K against the stock position. The payoff of this option, fr, at maturity time T is fr S. St - So - (ST-K)+ +C = K - So - (K - STC So-C K - S. + So-C. (1) (2) (3) (4) Pmar Lmar Here fr the payoff of the option at maturity time T So is the stock price at time t = 0 Sy is the stock price at maturity time T C is the net credit received at t=0 Skup and Sedown are the higher and lower break even (ie. fr = 0) stock prices at maturity. If there is only one break even price, it is denoted as S. Lmaz is the maximum loss at maturity Pmar is the maximum profit at maturity. For this strategy, find one academic paper that studied this option. In your answer, you need to 1. provide their model which they used for the stock price process and this option 2. state the assumptions that the author(s) used 3. provide the result(s) with their proofs to price this strategy