Share by the expiration date

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You just purchased 300 shares of a company at $94.50 per share and have decided to write covered calls against these stocks. You sell 3 calls at the current market price of $8.52. The calls have 3 months to expiration and carry a strike price of $99.25. The stock pays a quarterly dividend of $0.95 a share and the next dividend is to be paid in a month. Determine the total profit you generate if the stock price rises to $99.10 a share by the expiration date.

Reference no: EM133305870

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