单选题
An investor purchases a stock for $40 a share and simultaneously sells a call option on the stock with an exercise price of $42 for a premium of $3/share. Ignoring dividends and transactions cost, what is the maximum profit that the writer of this covered call can earn if the position is held to expiration?
【正确答案】
C
【答案解析】This is an out of the money covered call. The stock can go up $2 to the strike price and then the writer will get $3 for the premium, total $5.