Question: 4. Consider a call option with one year time remaining to expiration and the table below (15 pts) Call premium Time Now Later Stock Price

4. Consider a call option with one year time remaining to expiration and the table below (15 pts) Call premium Time Now Later Stock Price 42 39 Call Exercise Price 40 40 Provide the result of the covered call writing strategy in the table below in the context of marking to market only (Time | or combined position Stock Position Call Option Position Call Option PositionN Net Now Action: Action: Result Pays Recevas 42 Col( hen s?ack 6 months Action: later Action: Result 39 Cer to buy bsck th 3- : 38 shock Results in SLoss of .0712

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