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2. a. You own a call option with a strike price of $120. The option expires in six months. What is the payoff on the

2. a. You own a call option with a strike price of $120. The option expires in six months. What is the payoff on the call if the stock is trading at $140 in six months? What is the payoff on the call if the stock is trading at $100 in six months? Sketch the payoff diagram for the value of the call at expiration as a function of the stock price at expiration. b. c

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