A stock that you can purchase for $ 9 0 a share, a 1 1 0 ,

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Question:

A stock that you can purchase for $

90

a share, a

110, 1

year call option can be sold for $

9 .

The stock pays a $

4

annual dividend. If you execute a covered call, and the stock is in the money at the expiration of the option, what is your rate of return on the position? What is your maximum downside exposure?

Posted Date: May 18, 2024 06:06 PM

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