You Purchased a Stock for $60 a Share and Simultaneously

question 51

Multiple Choice

You purchased a stock for $60 a share and simultaneously wrote a covered call with a strike price of $70 on the stock. The call was selling for $0.50 at that time. Just prior to expiration, the
Stock was selling for $72 a share. What was your gain or loss per option share on this
Transaction?

• A)$60.50 loss
• B)$0.50 loss
• C)$10.50 gain
• D)$12.50 gain

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