What is his profit if he holds his position until maturity

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Reference no: EM131520656

An investor writes a covered call by buying one share of a stock at $50 and selling a European call option on the stock with strike price $55 at $1.25. What is his profit if he holds his position until maturity of the option and the stock price is $45 then?

A. -$6.25

B. -$3.75

C. -$1.25

D. $1.25

E. $3.75

Reference no: EM131520656

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