Maximum profit and the maximum loss in shares
An investor purchases 200 shares of XYX stock for $55.00 a share and immediately sells 2 covered call contracts at a strike price of $60.00 a share. The premium is $3.00 a share. What are the maximum profit and the maximum loss?
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Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO.
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