Question
An investor buys a one-year European-style call option on the same stock.The strike is $105,and the premium is $5. In a year, the spot stock
An investor buys a one-year European-style call option on the same stock.The strike is $105,and the premium is $5.
In a year, the spot stock price is $90 per share. What is the payoff from financially settling the long call position?$__________
In a year, the spot stock price is $95 per share. What is the payoff from financially settling the long call position?$__________
In a year, the spot stock price is $100 per share. What is the payoff from financially settling the long call position?$__________
In a year, the spot stock price is $105 per share. What is the payoff from financially settling the long call position?$__________
In a year, the spot stock price is $110 per share. What is the payoff from financially settling the long call position?$__________
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