You Wrote a Covered Call with a Strike Price of $45

question 57

Multiple Choice

You wrote a covered call with a strike price of $45 and an option premium of $1.10.Assume the stock price is $44 a share currently and that it falls to $42 a share and remains at that price until the option expires.As a result,you will:

• A)lose an amount equal to the option premium.
• B)lose the option premium but get to keep the stock.
• C)keep both your stock and the option premium.
• D)keep the option premium but lose your shares of stock.
• E)lose both your stock and the option premium.

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Definitions:

Mental Illness

A broad category of conditions affecting a person’s thinking, emotion, and behavior, which may cause distress and difficulty in functioning.

Managed Care Programs

Health insurance plans that contract with healthcare providers and medical facilities to provide care for members at reduced costs and oversee the utilization of healthcare services.

Drug Therapy

The treatment of disease by administration of drugs or medications, with the intent to cure or reduce symptoms.

Psychogenic Causes

Refers to psychological factors that lead to physical symptoms or diseases, without any traceable physical cause.