Question
Subject: Derivatives - Option My question: For a long call option, how do I sketch the net payoff diagram if the premium price is higher
Subject: Derivatives - Option
My question: For a long call option, how do I sketch the net payoff diagram if the premium price is higher than payoff price?
Question that I am working on: "You enter a long call option with a strike price of $6 and premium of $2.30. At expiry, the share price is $7.80. Show your gross payoff at expiry and the net payoff from your option trading".
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
