12. Suppose you bought an index call option for $5.50 that has a strike price of 200...

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12. Suppose you bought an index call option for $5.50 that has a strike price of 200 and that, at expiration, you exercised it. Also suppose that at the time you exercised the call option, the index has a value of 240.

a. If the index option has a multiple of $100, how much money does the writer of this option pay you?

b. What profit did you realize from buying this call option?

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