Strategy of covered call writing to partially hedge

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Evanston Insurance Inc. has purchased shares of Stock E at $50 per share. It will sell the stock in six months. It considers using a strategy of covered call writing to partially hedge its position in this stock. The exercise price is $53, the expiration date is six months, and the premium on the call option is $2. Complete the following table. Possible stock price in 6 months: 46, 47, 52, 55, 57, 60

Reference no: EM131058418

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