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Explain in short . Consider the graph of a call option shown at right. The option is a three-month call option on 62,500 with a

Explain in short

. Consider the graph of a call option shown at right. The option is a three-month call option on 62,500 with a strike price of $1.50/ and an option premium of $3,125. What are the values of A, B, and C, respectively? Note that A is the profit or loss; B and C are the spot prices. Profit A SI 1 loss

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