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You have an asset trading for 1 0 0 . ATM calls and puts are available at 4 each. You would like to have a
You have an asset trading for ATM calls and puts
are
available at each. You would like to have a covered
call
position that is buying the asset and selling the
call
What would be the profit profile for such a strategy?
Would
you recommend an alternative? Why or why not?
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