What will be your overall gain or loss

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Reference no: EM13947572

Assume you sell 100 shares of Larson Corporation short at $61. You also buy a 60 call option for $3.5 to protect against the stock price going up.

(A) If the stock ends up at $80, what will be your overall gain or loss?

(B) If the stock ends up at $40, what will be your overall gain or loss?

(D) If you have an unprotected short sale position (no call option), what is the most you could lose?

Reference no: EM13947572

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