Determine his portfolios overall profit or loss

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Reference no: EM133325653

Question:Chris Felix currently owns 100 shares of Rattle Bird Company's stock, and he wants to write covered calls. If she writes one contract on Rattle Bird for a $3 premium with an exercise price of $50, determine his portfolio's overall profit or loss under the following conditions when the option matures. Ignore transaction costs and taxes.

(a) The price of the stock falls from its current price of $51 down to $50

(b) The price of the stock rises from its current price of $51 to $60

Reference no: EM133325653

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