You just established a covered call strategy (Long a share at Share price = $50 and write a call with call price = $3, the strike price for the call is $50), what is your net gain or loss for this strategy at maturity date if the share price changes to the following prices: $45 and $55, respectively?

Answer rating: 100% (QA)

To calculate the net gain or loss for a covered call strategy at maturity we need to consider the di... View the full answer