You have bought 1 share of stock for $74.2 and sold (wrote) 1 call option on the same stock. Such a portfolio is called
Posted: Thu Apr 28, 2022 1:40 pm
You have bought 1 share of stock for $74.2 and sold (wrote) 1
call option on the same stock. Such a portfolio is called a covered
call. The option has an exercise price of $80, a price (premium) of
$2.61, and expires in 5 months.
What is your profit from buying the stock only if the stock
price is $20 in 5 months (in $)?
What is your profit from selling (writing) the option if the
stock price is $50 in 5 months (in $)?
What is your total profit if the stock price is $100 in 5 months
(in $)?
call option on the same stock. Such a portfolio is called a covered
call. The option has an exercise price of $80, a price (premium) of
$2.61, and expires in 5 months.
What is your profit from buying the stock only if the stock
price is $20 in 5 months (in $)?
What is your profit from selling (writing) the option if the
stock price is $50 in 5 months (in $)?
What is your total profit if the stock price is $100 in 5 months
(in $)?