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Part 1 of 4 O Points: You own a call option on Intuit stock with a strike price of $36. When you purchased the option,
Part 1 of 4 O Points: You own a call option on Intuit stock with a strike price of $36. When you purchased the option, it cost $3. The option will expire in exactly three months' time. a. If the stock is trading at $50 in three months, what will be the payoff of the call? What will be the profit of the call? b. If the stock is trading at $26 in three months, what will be the payoff of the call? What will be the profit of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration d. Redo c, but instead of showing payoffs, show profits. a. The payoff of the call is $, and the profit of the call is $ (Round to the nearest dollar.)
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