Problem:
Assume you purchase 200 shares of stock at $90 per share and wish to hedge part of your position by writing a 100 share option. The option has a strike price of 75 and a premium of $6.
Required:
Question: If at the time of expiration, the stock is selling at the following price $75, what will your overall gain or loss at this selling price?
Note: Provide specific examples to support your answers.