Several years ago, Sonja purchased 250 shares of Sugar Inc at a price of $14 per share. Recently, she wrote a covered call for 250 shares of Sugar. The December call carries a strike price of $20 at a premium of $2.25 per share. Ignoring commissions, if the call option is exercised, what is Sanja's total gain?
a) $937.50
b) $1,500.00
c) $2,062.50
d) $4,062.50
a) $937.50
b) $1,500.00
c) $2,062.50
d) $4,062.50