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2-day call option with a strike price of $1600/share for a price of $13.00/share. Assume a 3.5% interest rate per annum. a) Draw a payoff

2-day call option with a strike price of $1600/share for a price of $13.00/share. Assume a 3.5% interest rate per annum.

a) Draw a payoff and profit diagram of this position. Indicate your breakeven point.

b) To your horror, over the next two days CMG jumps to $1675/share. What is your total profit or loss?

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