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Assume that you have shorted the following call option: call option on Intuit stock with a strike price of $40. The option will expire in
Assume that you have shorted the following call option: call option on Intuit stock with a strike price of $40. The option will expire in exactly three months' time. a. If the stock is trading at $55 in three months, what will you owe? b. If the stock is trading at $35 in three months, what will you owe? c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration
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