A nine-month call option with a strike price of $22 costs $4.00. The underlying stock...
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A nine-month call option with a strike price of $22 costs $4.00. The underlying stock price is $21.00. Calculate the maximum potential profit and loss if a trader writes a covered call? a. The maximum potential profit is $5 whereas the maximum potential loss is $17 b. There is an unlimited potential of net profit whereas the maximum potential loss is limited to $21 c. The maximum potential profit is $5 whereas the maximum potential loss is unlimited d. There is an unlimited potential of net profit whereas the maximum potential loss is limited to $17
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