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Label the following for this diagram: a. Name of options payoff b. Identify whether positive or negative premium c. Identify break-even point d. What is
Label the following for this diagram: a. Name of options payoff b. Identify whether positive or negative premium c. Identify break-even point d. What is the profitt or loss when stock price is $60 at maturity e. If you have this option position, should you exercise your right (if any) assuming that the stock price is $60 at maturity? $40 Option Payoffs and Profits $20 Payoff and Profit $0 Option Payoff Option Profit ---- Exercise Price -$20 -$40 $0 $20 $60 $80 $40 Stock Price At Maturity Short put Short call Long call Long put Premium +$5 Premium -$5 Break-even -$45 Break-even +$35 Break-even -$35 Break-even +$45 Loss -S5 Profit +$5 Loss -$15 Profit +$20 Profit +$15 Loss -$20 I don not have any rights to exercise I should not exercise my right I should exercise my right
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