单选题 George Mote owns stock in IBM currently valued at $112 per share. Mote writes a call option on IBM with an exercise price of $120. The call option is sold for $1.80. At expiration, the price of IBM is $115. What is Mote"s profit (or loss) from his covered call strategy? Mote:

A、 gained $3.00.
B、 lost $1.80.
C、 gained $4.80.

【正确答案】 C

【答案解析】Since the option is out-of-the-money at expiration (Max (0, S -X) ), the option is worthless. Also, the stock increased in value from $112 per share to $115 per share, creating a $3 gain. The $3 gain in the stock price is added to the $1.80 gain from writing the (unexercised) call option. Therefore, the total gain is $4.80 ( $3 + $1.80).