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  3. you have bought 1 share of stock for $24.79 and so

You have bought 1 share of stock for $24.79 and sold (wrote) 1 call option...

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Finance

You have bought 1 share of stock for $24.79 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 $30, a price (premium) of $2.74, and expires in 5 months.

Part 1: What is your profit from buying the stock only if the stock price is $20 in 5 months (in $)?

Part 2: What is your profit from selling (writing) the option if the stock price is $50 in 5 months (in $)?

Part 3: What is your total profit if the stock price is $100 in 5 months (in $)?

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