Question

Create a table for the following (see similar tables in your text)

You buy stock for $ 50 per share, and you SELL a covered call with a $ 52.50 strike for a premium of $ 1.25

Show in your table the net profit to you for the following ending stock prices

$ 40        $ 50        $ 51        $ 52        $54         

Assume the same stock is purchased, but now you sell a PUT with a $ 45 strike for a premium of $ 2.30.

Show in your table the net profit for the following stock prices

$40         $45         $50

Answer 1

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