Question: Please show all work. Consider a call option with one year time remaining to expiration and the table below Time Stock Price Call Exercise Price
Please show all work.
Consider a call option with one year time remaining to expiration and the table below
| Time | Stock Price | Call Exercise Price | Call premium |
| Now | 33 | 30 | 4 |
| Later | 29 | 30 | 1 |
Provide the result of the covered call writing strategy in the table below in the context of marking to market only.
| Time | Stock Position | Call Option Position | Net or combined position |
| Now | Action:
| Action:
| Result:
|
| 6 months later | Action:
| Action:
| Result:
|
| Results in $
|
|
| |
| Results in %
|
|
| |
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