You just purchased a share of GME stock for $160. You plan to sell the stock when the stock price reaches $175. You recall from class that writing a covered call would generate extra income while imposing sell discipline. Therefore you decide to sell a call option on GME stock with a strike price =$__________. Complete the table below to show the payoff of your covered call position:

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Stock Price Value of Short Call Value of Covered Call 145 150 155 160 165 170 175 180 185 190 Stock Price Value of Short Call Value of Covered Call 145 150 155 160 165 170 175 180 185 190

Answer rating: 100% (QA)

To determine the strike price of the call option that you should sell we need to consider your plan ... View the full answer