Kizspy | Question: 28
(Choose 1 answer)
(18499) Assume a pension fund purchased stock at $53. Call options at a $50 exercise price presently have a $4 premium per share. The pension fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is $56, what is the gain or loss per share to the pension fund (includingits gain from holding the stock as well)?
A. $4 gain
B. $6 loss
C. $2 loss
D. $1 gain
