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The market price for Alphabet Inc. (Ticker: GOOG) was $98.05 when Peter bought a call option today. The call premium is $4.15 and the exercise
The market price for Alphabet Inc. (Ticker: GOOG) was $98.05 when Peter bought a call option today. The call premium is $4.15 and the exercise price is $105. The option will be expired on Dec. 16, 2023
- Draw the contingency graph for Peter. Label x axis, y axis, each point/interaction on the graph.
2. What is the break-even point for Peter?
3. What are Peters maximum profit and maximum loss?
4. Show the profit/loss for Peter if, at the expiration date, the Alibaba price is (1) $90, (2) $108, and (3) $130.
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