Today you are selling a call option on ABC stock. The call option has a strike price of $17, 10 months to expiration, and currently trades at a premium of $8 per share. If at maturity the stock is trading at $13, what is your net profit on this position? Keep in mind that one option covers 100 shares (multiply profit per share by 100)

Answer rating: 100% (QA)

To calculate the net profit on the position we need to consider the premium ... View the full answer