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You are going to purchase Facebook stock today at $104. You will sell the stock in 6 months. You consider using a covered call strategy
You are going to purchase Facebook stock today at $104. You will sell the stock in 6 months. You consider using a covered call strategy to hedge your position in the stock. The exercise price is $106, and expires in six months. The premium on the call option is $2. What is the profit or loss of the covered call strategy if the stock price is $100, $102, $104, $106, $108 or $110 in six months?
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