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thumbs up if correct thanks! Boeing (BA) shares currently sell for $330/share. BA expects to pay a $6.85/share dividend in 3-months. The 3-month risk-free rate,
thumbs up if correct thanks! Boeing (BA) shares currently sell for $330/share. BA expects to pay a $6.85/share dividend in 3-months. The 3-month risk-free rate, compounded continuously, is 2.25%. You are long BA shares (valued today at $330/share) and decide to hedge your position for the next 3-months using a covered call strategy. You do this by shorting 3-month BA American calls, with a strike price of 300, selling for $38. At expiration if the stock price of BA is $300, what is the per share profit/loss from your short call position? Pick the closest answer. O Profit of 30 Profit of 38 O Loss of 30 Loss of 38
thumbs up if correct thanks!
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