QUESTION 4 We are given the folloing information: Stock price $50, volatility = 0.3, risk-free...
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QUESTION 4 We are given the folloing information: Stock price $50, volatility = 0.3, risk-free rate -5%, and dividend yield 296. We just bought one share of the stock and we also write a covered call at the strike price of $60 with one year to maturity. What is the premium we collect from the covered call assuming one option covers one share of stock? What is the breakeven stock price? premium is $3.45 and the breakeven stock price is $53.45 premium is $3.08 and the breakeven stock price is $53.08 premium is $3.08 and the breakeven stock price is $46.92 premium is $3.08 and the breakeven stock price is $60

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