Covered Option Example Suppose you have written a covered call for XYZ stock. Given the information below. (1] Calculate your total payoff and profit at expiration from purchasing the stock and selling a 1000-strike call option. [2] Graph the total payoff and profit diagram at expiration date Call Option Premium 23.808 K 1000 Efective Rate 0.02 Payoff at Expiration Profit Stock Price Short Call - Total Payoff -(Cost+Interest) 900 900 -924.31 -24.31 950 950 -924.31 25.69 1000 1000 -924.31 75.69 1050 50 1000 -924.31 75.69 1100 -100 1000 -924.31 75.69 1150 -150 1000 -924.31 75.69 1200 -200 1000 -924.31 75.69 Payoff 1040 980 890 840 0 1000 1050 1400 1190 1200 Profit 100.00 80.00 60.00 40.00 20.00 Profit 0.OO 20.00 908 980 4000 1030 1100 4130 1200 -40.00 Experiment 3 Suppose you have written a covered put for XYZ stock. Given the information below. [1) Calculate your total payoff and profit at expiration from selling the stock and selling a 1000- strike put option. [2] Graph the total payoff and profit diagram at expiration date (3) Use the same information. Compute the payoff and profit of a written call and compare them with your results in (1). Analyze the relationship between written options and covered options. Put Option Premium 100 K 1050 Effective Rate 0.01