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A call on Dupont stock, with a strike price of $ 40, expires in three months. What is the payoff for the option buyer if
A call on Dupont stock, with a strike price of $ 40, expires in three months. What is the payoff for the option buyer if the stock goes for $ 55 in three months? Same question for the seller. What is the gain for the buyer if the stock goes for $ 35 in three months? For the seller? Graph the maturity payoff profiles of the buyer and seller of the call as a function of the stock price.
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