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Derivatives
Derivatives
Medium
An investor owns 100 shares of Beacon Energy at $80 and writes a covered call with a strike price of $90 for a premium of $4 per share. At expiration, Beacon Energy is trading at $95. The investor's total profit on the combined position is:
A
$1,400
B
$1,900
C
$1,000
D
$400
Select an answer to continue
Tags
#covered-call
#option-strategy
#payoff-calculation
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CFA Level I — Derivatives Practice Question | AcadiFi | AcadiFi