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. It is March and a trader writes a September call option with a strike price of $40. The option price is $2.5. Calculate the
. It is March and a trader writes a September call option with a strike price of $40. The option price is $2.5. Calculate the profitability (loss) at the following hypothetical prices (Use the table to answer the question).
Market price | Profit or loss |
30.0 |
|
32.5 |
|
35.0 |
|
37.5 |
|
40.0 |
|
42.5 |
|
45.0 |
|
47.5 |
|
50.0 |
|
52.5 |
|
55.0 |
|
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