Kizspy | Question: 29
(Choose 1 answer)
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 stack 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 (including its gain
from holding the stock as well)?
A. $4 gain
B. $6 loss
C. $2 loss
D. $1 gain
