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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
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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