Suppose that you sell cdt short at 23 and at the same time, Ask an Expert

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Suppose that you sell CDT short at $23 and at the same time you write a call option on CDT with a strike price of $15 and a premium of $2.

What is the combined profit or loss on the two positions together if just prior to expiration of the call option the price of CDT is $21?

Assume that you cover your short position (meaning you get rid of the short position) just prior to the time of option expiration.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92856469

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