Covered call profit when called away
You hold a stock bought at $50 and sell a call struck at $55, collecting a $2 premium. At expiry the stock is at $60. What is your total profit per share, in dollars?
Show hints (2)+
- Above the strike you are called away - the stock gain is capped at strike − cost.
- Add the premium; don't use the full stock move.
Answer
Reveal answer →Final answer
7
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Asked at: Game-Based Aptitude, ETF Market-Making