Section 1 A) Explain how to write a covered call on a stock. (1 mark) B) Suppose at the maturity, the terminal stock price is St. The strike price for the call option is K. Construct a table that shows the payoff for each position and total payoff from a covered call strategy, in different terminal stock price (ST) scenarios. (2 marks) C) Explain why a covered call is not a good hedging strategy. (2 marks)