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The following graph shows the contingency graph for sellers of euro call options, with a premium of $0.04 and an exercise price of $1.40. According

The following graph shows the contingency graph for sellers of euro call options, with a premium of $0.04 and an exercise price of $1.40.

According to the graph, if the spot rate turns out to be $1.46, and the option is exercised, the seller will LOOSE/GAIN $0.03/$0.02/$0.01/$0.07 per unit.

According to the graph, break-even price is $1.50/$1.40/$1.38/$1.44 .

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