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The stock of AZ currently sells for $15 a share. You write a European call option on the stock and receive a $2.35 option premium.
The stock of AZ currently sells for $15 a share. You write a European call option on the stock and receive a $2.35 option premium. The strike price of the option is $15. The potential stock prices at option maturity are provided in the table in the Excel file. C) Fill in the table and calculate the payoffs and the net income for this option position
Part 2: Short Call C) Table \begin{tabular}{|r|l|l|l|l|} \hline Stock Price at Maturity & Exercise price & \multicolumn{1}{|c|}{ Total Payoff } & Option Premium & Net income \\ \hline$1.00 & & & & \\ \hline$5.00 & & & & \\ \hline$10.00 & & & & \\ \hline$20.00 & & & & \\ \hline$25.00 & & & & \\ \hline$0.00 & & & & \\ \hline$35.00 & & & & \\ \hline$40.00 & & & & \\ \hline \end{tabular}Step by Step Solution
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