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You just established a covered call strategy (Long a share at Share price = $50 and write a call with call price = $3, the
You just established a covered call strategy (Long a share at Share price = $50 and write a call with call price = $3, the strike price for the call is $50), what is your net gain or loss for this strategy at maturity date if the share price changes to the following prices: $45 and $55, respectively?
A. | -$2.00 and $8.00 | |
B. | -$5.00 and $8.00 | |
C. | -$2.00 and $3.00 | |
D. | -$5.00 and $3.00 |
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