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The stock price of GameStop is currently $110 and the call option with strike price of $125 is $5. A trader purchases 400 shares of

The stock price of GameStop is currently $110 and the call option with strike price of $125 is $5. A trader purchases 400 shares of the stock and short 4 contracts of call options.

a. What is the maximum potential loss for the trader?

b. If the stock price is $140 with the call option at expiration, what is the traders net profit?

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