What is the investor profit

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Reference no: EM132041786

Use the following stock info to answer questions below A stock has a call option available at an exercise price of $30!for a cost of $2.89.

The cost of put option at this same exercise price is $2.15 the price of the underlying stock is currently $30

1. An investor writes a covered call. At expiration the stock price is $27 what is the investor profit?

A. -289

B. -11

C. 289

D. 2989

2. What is the break even stock price at expiration for the covered call?

A. 27.11

B. 29.89

C. 30

D. 32.89

E none of above

3. What is the maximum profit if the covered call is held to expiration?

A. 30

B. 289

C. 2711

D. Infinity

E. none of above

4. What is the maximum loss if the covered call is held to expiration?

A. -3289

B. -289

C. -2711

D.infinite

E. none of above

Reference no: EM132041786

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