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Graphing/Drawing: Provide neat graphs/drawings B-1 Graph the profit of shorting a call with an exercise price of $100 and a premium of $2.97. Also (1.)
Graphing/Drawing: Provide neat graphs/drawings B-1 Graph the profit of shorting a call with an exercise price of $100 and a premium of $2.97. Also (1.) Underneath the graph, answer (a) and (b): (a.) What happens if the stock price at time of exercise is equal to $75? (b.) What happens if the stock price is $125? (2.) Place an A on the graph for the payoff given (la). Place a B on the graph for the payoff given (1b)
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