motivated by email from Steve N.
Here's the problem:
I buy a bunch of stock and immediately sell (or write) a call Option.
I borrow some money to help pay for the cost of the transaction ... at some borrowing rate.
After a while, the Call is exercised and I sell my stock at the Strike Price and repay the money I borrowed.
The question is: "What's my annualized return?"
>I assume there's a magic formula?
Yes: My initial outlay of money is: $A = (Price of Stock)  (Amount Borrowed)  (Call Premium)
After a time T years I receive: $B = (Strike Price)  (Loan Payment)
My $A has turned into $B in T years, so my annualized return is: CAGR = (B/A)^{1/T}  1
>I click on the picture to get the spreadsheet?
Always.
>So what's all that BlackScholes stuff?
Aah ... if'n you wanted to check the call premium against the BlackScholes estimate, you could enter some additional numbers, like
Time to Expiry, Volatility and Riskfree Rate. Or, you could just ignore that stuff.
