Business, 27.07.2021 17:40 hmu323

An investor buys a stock for $40 per share and simultaneously sells a call option on the stock with an exercise price of $42 for a premium of $3 per share. Ignoring the dividends and transaction costs, what is the maximum profit the writer of this covered call can earn if the position is held to expiration?

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An investor buys a stock for $40 per share and simultaneously sells a call option on the stock with...

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