单选题
The potential profits from writing a covered call position on a stock are: A. less than potential profits of a short call. B. limited to the premium plus stock appreciation up to the exercise price. C. limited to the premium.
【正确答案】
B
【答案解析】The covered call: stock plus a short call, or a short put. This strategy is not without risk. The call writer is trading the stock's upside potential for the call premium. The desirability of writing a covered call to enhance income depends upon the chance that the stock price will exceed the exercise price at which the trader writes the call. The owner of a stock has the rights to all upside potential. The profits for a short call are limited to the premium.