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(11) Compute the final payoff, and the overall profit, of an option WRITER if he sold a CALL option with an exercise price of $50

(11) Compute the final payoff, and the overall profit, of an option WRITER if he sold a CALL option with an exercise price of $50 and the stock ended at $45 at expiration.

ANSWER: Payoff = 0; Profit = Initial Sale Proceeds less fees.

what is initial sale proceeds? what is fees?

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