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The stock price of GameStop is currently $110 and the call option with strike price...

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Finance

The stock price of GameStop is currently $110 and the call option with strike price of $125 is $4. A trader purchases 300 shares of the stock and short 3 contracts of call options.

a. What is the maximum potential loss for the trader? (sample answer format: $25,000)

b. If the stock price is $130 with the call option at expiration, what is the traders net profit? (sample answer format: $25,000)

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