6. A share of ABC Corporation sells for $95. A call on the share with exercise price...

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6. A share of ABC Corporation sells for $95. A call on the share with exercise price $90 sells for $8.

a. Graph the profit pattern from buying one share and one call on the share.

b. Graph the profit pattern from buying one share and two calls.

c. Consider the profit pattern from buying one share and N calls. At which share price do all of the profit lines cross?

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Financial Modeling

ISBN: 9780262024822

2nd Edition

Authors: Simon Benninga

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Question Posted: Oct 17, 2024 11:02 AM

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6. A share of ABC Corporation sells for $95. A call on the share with exercise price...

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Financial Modeling

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