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Use the chart below for all remaining questions. The following option prices were observed for a stock on July 6th. The stock is priced at
Use the chart below for all remaining questions. The following option prices were observed for a stock on July 6th. The stock is priced at $165.13. The expirations are on July 17th, August 21st, and October 16th. FINA 416-01 Derivatives and Risk Management 7. Buy one August 165 call contract. Hold it until the option expires. Determine the profits and display the results in a chart (include profits for the following underlying stock prices: 130,140,150,160,170,180,190 ). Identify the breakeven stock price at expiration. What is the maximum possible gain and loss on the transaction
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