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Draw a profit or loss graph for a call option contract with an exercise price of $50 for which a $5 premium is paid. You
Draw a profit or loss graph for a call option contract with an exercise price of $50 for which a $5 premium is paid. You may assume the underlying assets price is as low as $10 and as high as $80 (in even multiples of $10) and that the option is being evaluated on its expiration date. Calculate and identify the breakeven point, maximum profits and maximum losses.
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