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Calculate the net profit realised

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Reference no: EM132580177

You own 100 shares originally purchased for $33.11 each. To gain additional income you sold calls on the shares for $3.10 per share with a strike price of $34.00 (given that the market price of each share at maturity is $39.93)

a) Calculate the net profit realised from the share and option holding at maturity. Give your answer in dollars to the nearest dollar.

Net profit realised = $

b) Calculate the net profit realised had the call options not been bought. Give your answer in dollars to the nearest dollar.

Net profit realised without call options = $

Reference no: EM132580177

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