Question: Please help me understand how to answer these questions. 1)Writing a call option on stock that you already own creates a covered call position.Why is

Please help me understand how to answer these questions.

1)Writing a call option on stock that you already own creates a covered call position.Why is this strategy sometimes recommended to investors?Under what conditions might it be useful?What are the risks to using covered calls?

2)A put and a call option have the same maturity and strike price. If they also have the same price, which one is in the money?Using the expression for put-call parity, mathematically show how you reached your conclusion.

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