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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

100 .

ATM calls and puts

are

available at

4

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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