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A) You buy call options with strike price 50 eur, expiration in 6 months and premium 2 eur. At expiration, the underlying is traded for

A) You buy call options with strike price 50 eur, expiration in 6 months and premium 2 eur. At expiration, the underlying is traded for 55 eur.

Calculate:

Payoff of the options?

Profit of the options?

B) You sell call options with strike price 50 eur, expiration in 6 months and premium 2 eur. At expiration, the underlying is traded for 55 eur.

Calculate:

Payoff of the options

Profit of the options

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