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The graph given below is the profit/loss graph for the bull constructed in part a) above. State missing values A, B and C and the

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The graph given below is the profit/loss graph for the bull constructed in part a) above. State missing values A, B and C and the significance of each value. Note: the graph is not drawn to scale

PART A - QUESTION

Question 1 [30 marks]

a) Options on the NYSE stock index:

Option

Strike price ($)

Premium ($)

Call

45

4

Call

55

2

P/L A Terminal Price B D

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