Question: The current price of TCS stock is Rs$.1550.$ You write an out of the money American call option on TCS with an exercise price of Rs$.1800$ for which you receive a premium of Rs$.45.$ You also purchase the stock. Now answer the following questions:

Answer the following:

$($a$)$ What is the name of this strategy?

$($b$)$ What is the break$-$even point for this strategy?

$($c$)$ What is the maximum gain from this strategy?

$($d$)$ What is the maximum loss from this strategy?

$($e$)$ Draw the Payoff diagram and Profit and Loss diagram for this strategy?