Assume You Purchase 200 Shares of Stock at $80 Per

question 40

Essay

Assume you purchase 200 shares of stock at $80 per share and wish to hedge part of your position by writing a 100 share option. The option has a strike price of $75 and a premium of $6. If at the time of expiration, the stock is selling at the following prices ($75, $80, $90) what will be your overall gain or loss?

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Definitions:

Muscle Endurance

The ability of a muscle or group of muscles to perform repetitive contractions over a period of time without becoming exhausted.

Decreased Muscle Endurance

A reduction in the ability of a muscle to perform repeated contractions over a period of time without getting fatigued.

Activities Of Daily Living

Basic personal care tasks, including bathing, dressing, eating, and mobility, essential for everyday living.

Muscle Atrophy

The wasting or loss of muscle tissue due to a lack of physical activity or underlying health condition.