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(Call option profits) It is 18 July 2015 and you've jus bought one call option on foreverYours stock. The option cost you $6, expires on
(Call option profits) It is 18 July 2015 and you've jus bought one call option on foreverYours stock. The option cost you $6, expires on 18 September 2015, and has an exercise price of $20.
a. Complete the following excel table below.
b. make a graph which show the profit (column C) on the y-axis and the stock price St on 18 Sep 15 (Column A) on the x-axis.
Textbook Ch 17 Exercise 3 Dption cost (premium) Exercise price 6 20 Profit Forever Yours stock price, 18 Sep 15 (ST) 0 5 10 15 20 25 30 35 40 45 50 Exercise the call option? N N N N Y Y Y Y Y Y YStep by Step Solution
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