Bill owns 200 shares of EG stock. In November, the market price of EG was $15.45. Bill sold two March 16 calls on EG for $246. Between November and March, EG stock fluctuated between $14.75 and $15.85. EG paid a quarterly dividend of $0.40 per share on January 31. Over the November-March period, Bill earned

Question

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Bill earned a premium of $246 for selling two March 16 calls.
If EG stock was below $16 on the expiration date, Bill would keep the premium and the shares. If the stock was above $16, Bill would sell the shares for $16 each, and his profit would be $16 - $15.45 = $0.55 per share, or $110 for 200 shares. Since EG stock never went above $15.85, Bill kept the premium and the shares, so he earned $246.
Additionally, Bill received $0.40 per share in dividends on 200 shares, which is equal to $80.
Therefore, Bill's total earnings are $246 + $80 = $326. However, he also incurred a loss of $20 because the stock went down from $15.45 to $14.75, so his net earnings are $326 - $20 = $306, which is closest to $336 (choice C).

Bill Owns 200 Shares of EG Stock