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Suppose an Michael buys a call option for ABC stock at a strike price of $40. What is the total profit/loss for this investor if
Suppose an Michael buys a call option for ABC stock at a strike price of $40. What is the total profit/loss for this investor if the price of the stock is $20,$30,$40 or $50. Draw a graph with the profit/loss on the y axis and the stock price on the x axis.
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