Assuming there's a July call option on ABC.Inc with a strike price of $35 is also priced at a $0.75 premium. Right now the stock is priced at $30 per share and you write the call option for $0.75. Then the stock price goes to $33, so what is your total ($) gain or loss per share?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 11P
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Assuming there's a July call option on ABC.Inc with a strike price of $35 is also priced at a $0.75 premium. Right now the stock is priced at $30 per share and you write the call option for $0.75. Then the stock price goes to $33, so what is your total ($) gain or loss per share?

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