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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 month European call option contract on Unilever ltd by receiving $ premium per share. The contract size is shares per contract. The exercise price is $ and the stock is currently selling for $ You are required to answer following:
a The initial cash flow of the investors position? Marks
b The breakeven stock price to the investor? Marks
c Draw a table showing gain or loss from call option to option holder if stock price reaches to $ to $ with $ interval.
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