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Construct a covered call position

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Reference no: EM133125980

Question - Use the following information to work the remainder of the test:

Consider the following option prices:

Exercise Price

Call Price

Put Price

120

15.40

9.25

125

13.50

11.50

130

11.35

14.25

The underlying stock is currently price at $125.94.

For each option strategy make sure to graph the position and label breakeven stock prices, maximum profit, and minimum profit.

Required - Construct a covered call position using the 130 call.

Reference no: EM133125980

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