Assume an investor writes a call option for 100 shares at a strike price of 30 for

Question:

Assume an investor writes a call option for 100 shares at a of 30 for a premium of 5.75. This is a naked option.
a. What would the gain or loss be if the stock closed at 26?
b. What would the break-even point be in terms of the closing price of the stock?
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.