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Question 5 You buy 1,000 shares of Sunbeam at 11.125 and write 10 calls at a premium of 4.375 with a strike price of 7.5,
Question 5 You buy 1,000 shares of Sunbeam at 11.125 and write 10 calls at a premium of 4.375 with a strike price of 7.5, The stock goes to 20 in 6 months. You receive a 8 cent dividend per share. If the calls are exercised (which is the likely assumption). what is your percentage return?
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