The maximum gain for the writer of a call is
Splet29. nov. 2024 · The maximum reward in call writing is equal to the premium received. The biggest risk with a covered call strategy is that the underlying stock will be “called away.” With naked call... SpletA earned $400/- as Premium while writing the call option but had to sell the shares at $1200/- which was worth $1300/-. In our example, an obvious question comes to our …
The maximum gain for the writer of a call is
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SpletA put on Sanders stock with a strike price of $35 is priced at $2 per share while a call with a strike price of $35 is priced at $3.50. The maximum per share loss to the writer of an uncovered put is _____ and the maximum per share gain to the writer of an uncovered call is _____. A. $33.00; $3.50 B. $33.00; $31.50 C. $35.00; $3.50 Splet22. dec. 2024 · You wrote 1 95 put for $5 and bought 1 90 put for $2.50, for a credit of $2.50, or $250. Both options expire out-of-the-money worthless, and you expect to collect your $250 profit. However, for some unknown reason, the buyer of a 95 put exercises, and you are selected and assigned the long stock.
SpletThe gain or loss to the customer is: A. $400 gain B. $1,100 gain C. $1,500 gain D. $6,400 gain, A customer buys 1 ABC Feb 50 Call @ $7 when the market price of ABC is 52. If the … Splet02. apr. 2024 · In buying call options, the investor’s total risk is limited to the premium paid for the option. Their potential profit is, theoretically, unlimited. It is determined by how far the market price exceeds the option strike price and how many options the investor holds.
SpletCall A. The maximum loss to a writer is the exercise price less the premium. The maximum gain to the buyer is unlimited. B. The maximum gain to the buyer is unlimited. The maximum loss to the writer is the premium. C. The maximum gain to the buyer is limited to the exercise price less the premium. The maximum gain to the buyer is unlimited. 正确答 … Splet22. okt. 2024 · Scriptwriters working in the television industry are often paid by length. A 30-minute script for prime-time TV for example, comes in at $9,036 for the story and $27,100 …
SpletA earned $400/- as Premium while writing the call option but had to sell the shares at $1200/- which was worth $1300/-. In our example, an obvious question comes to our mind that if Mr. A feels that the shares of TV Inc are going to drop from its current level, then he could have bought a put option instead of selling a call option.
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