Question: Use options with strike K2 = $20.00: a. Draw a covered call (long stock plus short call) profit diagram. b. Give a reason why a

Use options with strike K2 = $20.00:
a. Draw a covered call (long stock plus short call) profit diagram.
b. Give a reason why a trader might want to hold a covered call position.
c. Explain the difference between a buy- write and an over- write strategy.

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