Required: You hold 10,000 shares of Apple Inc. (ticker symbol: AAPL) and you are considering entering into

Required:

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You hold 10,000 shares of Apple Inc. (ticker symbol: AAPL) and you are considering entering into a covered call writing strategy. You gather the following information: APPL Closing Price: $165.08 AAPL Call Options (6/17/22 Expiration) Strike Price 140 145 150 155 160 165 170 175 180 185 190 Bid 28.25 24.05 20.30 16.85 13.80 11.25 8.85 6.85 5.45 4.20 3.30 Ask 28.50 24.55 20.75 17.30 14.20 11.45 9.10 7.20 5.55 4.35 3.35 Implied Vol. (mid-market) 35.35% 34.48% 33.32% 32.46% 31.74% 31.09% 30.60% 30.43% 30.07% 30.22% 30.25% You hold 10,000 shares of Apple Inc. (ticker symbol: AAPL) and you are considering entering into a covered call writing strategy. You gather the following information: APPL Closing Price: $165.08 AAPL Call Options (6/17/22 Expiration) Strike Price 140 145 150 155 160 165 170 175 180 185 190 Bid 28.25 24.05 20.30 16.85 13.80 11.25 8.85 6.85 5.45 4.20 3.30 Ask 28.50 24.55 20.75 17.30 14.20 11.45 9.10 7.20 5.55 4.35 3.35 Implied Vol. (mid-market) 35.35% 34.48% 33.32% 32.46% 31.74% 31.09% 30.60% 30.43% 30.07% 30.22% 30.25%

Answer rating: 100% (QA)

a Based on the implied volatilities given the lowest strike pri... View the full answer