What is the percentage return

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Reference no: EM132942597

In November an investor wishing to utilize a hedging technique creates a covered call position as follows:

He purchases 400 shares stock at $42 and simultaneously sells 3 February 47 1/2 calls at $2.25

Problem 1: In January the stock is trading at $46 and the calls at $2.75. The investor decides to "unwind" his position and liquidate all shares owned. Ignoring commissions, what is his percentage return?

Reference no: EM132942597

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