Consider the graph below.
Assume a trader owns a share currently priced at $100. She writes a call option on this share with an exercise price of $110 and an assumed price of $4. For any stock price less than or equal to $110()
A. she is $14 better off with the covered call than she would be with the stock alone.
B. she is $4 worse off with the covered call than she would be with the stock alone.
C. she is $4 better off with the covered call than she would be with the stock alone.
参考答案:C
解析:
From the graph we can deduce that: For any stock price less than or equal to $110, she is $4 better off with the covered call than she would be with the stock alone.