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Which of the following images best illustrates the payoff of a call option written on Microsoft's common stock? The call has a $250 strike price
Which of the following images best illustrates the payoff of a call option written on Microsoft's common stock? The call has a $250 strike price with a maturity of two months and Microsoft's current stock price is $220. The cost of the call option is $2.50. All values are on a per share basis. a Payoff Diagram 20 15 10 Profit 0 -5 220 230 260 270 240 250 MSFT's Stock Price Payoff Diagram 25 20 15 Profit 10 5 0 220 230 260 270 240 250 MSFT's Stock Price Payoff Diagram 5 0 -5 -10 Profit -15 -20 -25 -30 220 230 260 270 240 250 MSFT's Stock Price Payoff Diagram 0 -5 -10 -15 Profit -20 -25 -30 -35 220 230 260 270 240 250 MSFT's Stock Price
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