Suppose that you own 100 shares of Zions Bank Company stock, which are currently selling for $30 per share. You sell someone the right to purchase your shares for $32 (a covered call). This right will cost them $1 per share, and the right is good for the next month. A month later, the shares are selling for $35. Assuming that the owner of the calls exercises her right to buy your shares, how much was your total investment gain in the course of the month?

Answers:

You gained $600, $500, $400, $300, or $100