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You own 100 shares originally purchased for $33.35 each. To gain additional income you sold calls on the shares for $2.90 per share with a
You own 100 shares originally purchased for $33.35 each. To gain additional income you sold calls on the shares for $2.90 per share with a strike price of $34.00 (given that the market price of each share at maturity is $32.91) a) Calculate the net profit realised from the share and option holding at maturity. Give your answer in dollars to the nearest dollar. Net profit realised = $ b) Calculate the net profit realised had the call options not been bought. Give your answer in dollars to the nearest dollar. Net profit realised without call options = $
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