Question
A graphical representation of trading options profits and loss in relation to the underlying price is termed as the payoff diagram. The graph indicates the
A graphical representation of trading options profits and loss in relation to the underlying price is termed as the payoff diagram.
The graph indicates the results at the day of maturity over the underlying asset price on option. The put payoff diagram is an inverse of the call payoff diagram.
What happens if the stock is priced above the strike at maturity?
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
