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1. Ms. Bain buys a share of IBM stock at $60. Plot the (net) profit or payoff (Y axis) of this stock against the stock

1. Ms. Bain buys a share of IBM stock at $60. Plot the (net) profit or payoff (Y axis) of this stock against the stock price (P). Show the calculations of key points. Find:

A. Maximum profit.

B. Maximum loss.

C. Breakeven stock price.

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