Return if Exercised
Return if Exercised
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Return If Exercised
The return that the writer, or seller, of a covered call would make if the buyer decides to exercise the option (or buy the underlying asset at the stated strike price). This return will likely be less than if the writer sold the underlying asset at the current market price. Otherwise, the option probably would not have been exercised.
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