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You bought 1000 Google Shares for $400 each. You also sold call options on Google with a strike of $435 for $20. a) What is
You bought 1000 Google Shares for $400 each. You also sold call options on Google with a strike of $435 for $20.
a) What is the maximum profit on your position?
b) What is the profit on your position when the stock hits $440?
c) Draw the profit/loss diagram for this position clearly marking the max loss and the maximum profit
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