Kizspy | Question: 29
(Choose 1 answer)
(24968) Consider a stock priced at $30. There are call options available at exercise prices of 30 and a
time to expiration of six months. The calls are priced at $2.89. There are no dividends and assume that all transactions consist of 100 shares or one contract (each includes 100 options).Suppose the investor constructed a covered call and held the position to expiration, what is the investor's maximum profit?
A. $3,289
B. $289
C. infinity
D. $2,711
E. none of these
