Bill owns 200 shares of EG stock. In November, the market price of EG was $15.45. Bill sold two calls expiring in March with a $16 strike price on EG for $246. From November to March, EG stock price stayed at $15.45. EG paid a quarterly dividend of $0.40 per share on January 31. Over the November-March period, Bill earned

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Bill earned from two sources: the sale of call options and dividends. The call options sold for $246 total. For dividends, with 200 shares and a $0.40 per share dividend, he earned $80 ($0.40 * 200). Adding these together, $246 (from options) + $80 (from dividends) equals $326.

Bill Owns 200 Shares of EG Stock