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An investor sold a 3 - month European call option contract on Unilever ltd . by receiving $ 5 0 premium per share. The contract

An investor sold a 3- month European call option contract on Unilever ltd. by receiving $ 50 premium per share. The contract size is 100 shares per contract. The exercise price is $ 1200 and the stock is currently selling for $ 1000. You are required to answer following:
a. The initial cash flow of the investors position? (7 Marks)
b. The break-even stock price to the investor? (8 Marks)
c. Draw a table showing gain or loss from call option to option holder if stock price reaches to $ 900, to $1500 with $ 100 interval.
(10 Marks)

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