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  3. 4. you own a share of stock you bought for so 20.

4. You own a share of stock you bought for So 20. You write a...

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Finance

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4. You own a share of stock you bought for So 20. You write a covered call with an exercise price of X 18. The premium on the option is Co-6. Plot the profit from the stock, the call, and the total on the chart below. Be sure to label each line. What is the breakeven stock price? Covered Call Profit, if held to expiration 24 24 20 18 16 14 12 10 - 20 18 16 14 12 10 10 12 14 .16 18 20 12 14 16 0 2 468 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Ending Stock Price (S)

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