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Author Question: Allison bought 100 shares of MIKO, Inc. stock at a price of $35 a share. In addition, she bought a ... (Read 46 times)

kms5229

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on: Mar 29, 2022

Question 1

What is the difference between writing a naked call option and writing a covered call option? Which one is riskier and why?

Question 2

Allison bought 100 shares of MIKO, Inc. stock at a price of $35 a share. In addition, she bought a put with a $35 strike price on MIKO at a cost of $125. Which of the following are true about Allison's position from now until the option expiration date?

I.Her maximum loss is $3,625.
II.Her maximum loss is $125.
III.Her minimum gain is $125.
IV.Her maximum profit is unlimited.

◦ I and IV only
◦ II and III only
◦ II and IV only
◦ II, III and IV only
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by kms5229 on Mar 29, 2022

kugyo01

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kms5229

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

amynguyen1221

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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