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What is this strategy called

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Reference no: EM132964188

Question - You have bought 1 share of stock for $25.91 and sold (wrote) 1 call option on the same stock. The option has an exercise price of $30, a price (premium) of $3.53, and expires in 5 months

1. What is this strategy called?

2. What is your profit from buying the stock only if the stock price is $20 in 5 months (in $)?

3. What is your profit from selling (writing) the option if the stock price is $50 in 5 months (in $)?

4. What is your total profit if the stock price is $100 in 5 months (in $)?

Reference no: EM132964188

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