An investor purchases 100 shares of common stock at €50 each and simultaneously sells call options on 100 shares of the stock with a strike price of €55 at a premium of €1 per option. At the expiration date of the options, the share price is €58. The investor's profit is closest to:
B is correct. Because St> X, the investor collects the premium plus the difference between strike price and purchase price. (X - So + Co . in this case 100 × (€55 - €50 + €1) =€600).