Question
You buy 1 share of ABC stock for $72 and write one call option on ABC stock with exercise price of $78. The call premium
You buy 1 share of ABC stock for $72 and write one call option on ABC stock with exercise price of $78. The call premium is $3. What is the total profit of your strategy if the stock price at expiration of the call option is $85?
| A. | $12 | |
| B. | $9 | |
| C. | $10 | |
| D. | $6 |
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
2nd Edition
0765625229, 9780765625229
