Question
You just purchased a share of GME stock for $160. You plan to sell the stock when the stock price reaches $175. You recall from
You just purchased a share of GME stock for $160. You plan to sell the stock when the stock price reaches $175. You recall from class that writing a covered call would generate extra income while imposing sell discipline. Therefore you decide to sell a call option on GME stock with a strike price =$__________. Complete the table below to show the payoff of your covered call position:
Stock Price Value of Short Call Value of Covered Call 145 150 155 160 165 170 175 180 185 190
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
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