Assume the Stock Price Is $50, a Call Option on That

Multiple Choice

Assume the stock price is $50, a call option on that stock has a premium of $5 and a put option on that stock has a premium of $3, and you presently hold no position in the three. Ignoring commissions, a covered call on 100 shares would require an investment of

A) $4,500
B) $4,700
C) $5,300
D) $5,700