A covered call writer will make a lower profit if the option is exercised early.

Name: A covered call writer will make a lower profit if the option is exercised early.
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Question

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A covered call writer's profit is maximized when the option is exercised, as they receive the premium from selling the call option plus the difference between the stock's purchase price and the strike price. Early exercise doesn't reduce this profit; it simply realizes the profit sooner.

A Covered Call Writer Will Make a Lower Profit If