ACT245H1 Chapter Notes -Covered Call
Document Summary
Max profit = premium received - purchase price of underlying + Strike price of short call - commissions paid. Max profit achieved when price of underlying >= strike price of. Loss occurs when price of underlying < purchase price of. Max profit = premium received - commissions paid. Loss occurs when price of underlying > strike price of short call + Profit achieved when price of underlying > purchase price of. Max loss occurs when price of underlying <= strike price of long. Profit achieved when price of underlying < sale price of underlying. Max loss = premium paid + commissions paid. Max loss occurs when price of underlying = strike price of long call. Max profit = strike price of short call - purchase price of. Underlying + net premium received - commissions paid. Max profit achieved when price of underlying >= strike price of short call. Max loss = purchase price of underlying - strike price of long.
