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What is the gain or loss per share to the pension fund

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Reference no: EM133021581

Problem - Assume a pension fund purchased stock at P50. Call options at a P47 exercise price presently have a P4 premium per share. The pension fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is P53, what is the gain or loss per share to the pension fund?

a. P1 gain

b. P2 loss

c. P4 gain

d. P6 loss

Reference no: EM133021581

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