Assume That You Purchased Shares of a Stock at a Price

Multiple Choice

Assume that you purchased shares of a stock at a price of $35 per share. At this time, you wrote a call option with a $35 strike and received a call price of $2. The stock currently trades at $70. Calculate the dollar return on this option strategy.

A) $25
B) -$2
C) $2
D) -$25
E) $0