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You would like to be holding a covered call position on the stock XYZ. The stock XYZ is currently selling for $120 . Over the

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You would like to be holding a covered call position on the stock XYZ. The stock XYZ is currently selling for $120. Over the next year, the stock price will either increase by 10% or decrease by 10%. The exercise price of the call option is $125. The risk free interest rate is 3% per year.

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