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Currently, a call contract with an exercise price of $12 on a share of List Aerospace's common stock is selling for (that is, its premium
Currently, a call contract with an exercise price of $12 on a share of List Aerospace's common stock is selling for (that is, its premium is) $2. What would the profit or loss graph look like for selling this option? Assume that the option is being evaluated on its expiration date. What is the maximum profit, maximum loss, and the break-even point?
How would these change if the exercise price was $14, and the price (or premium) of the option was $4?
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