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you buy 1800 shares of Facebook at 277.95 and write 18 calls with a strike price of 160 and a premium of 119.10. Prior to

you buy 1800 shares of Facebook at 277.95 and write 18 calls with a strike price of 160 and a premium of 119.10. Prior to expiration, the stock goes to 298,25 and the calls goes to 141.

A. Calculate your HPR if the call is exercised.

B. Assume the stock goes to 212.50 prior to expiration and the call goes to 32. If the calls are not exercised and then you decide to close out your position, what is your HPR?

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