You sold to open 10 25-strike calls for $2.10 each on a stock you own. You own 1,200 shares of the stock, which is currently trading at $23.66. The stock rises to $$25.41 and 1,000 shares are called at $25. What is your total return? (Ignore taxes and transaction costs).

You sold to open 10 25-strike calls for $2.10 each on a stock you own. You own 1,200 shares of the stock, which is currently trading at $23.66. The stock rises to $$25.41 and 1,000 shares are called at $25. What is your total return? (Ignore taxes and transaction costs).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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