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Suppose that an investor buy a call option on IBM stock with strike price X = 60 USD, which has 6 months until expiration. Assume

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Suppose that an investor buy a call option on IBM stock with strike price X = 60 USD, which has 6 months until expiration. Assume that the price of the contract is 5 USD. If the stock price at the expiration is ST, determine the pay-off of the investment. Draw a diagram showing the variation of the today's profit with the asset price

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