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An investor sells a Corn CALL option with a strike price of $3.20 for $0.25. (1) What is the break even price of this position?

An investor sells a Corn CALL option with a strike price of $3.20 for $0.25.

(1) What is the break even price of this position? (2)Write the payoff functions when futures price at maturity is above and below strike price. (3) Draw a diagram showing the variation of the investor's profit with the futures price at the maturity of the option.

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