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You buy a call option with strike price of $37. Currently, the market value of the underlying asset is $41. The put option premium is
You buy a call option with strike price of $37. Currently, the market value of the underlying asset is $41. The put option premium is $6.50. Assume that the contract is for 100 units of the underlying asset. Assume the interest rate is 0%.
Draw a diagram depicting the net payoff (profit diagram) of your position at expiration as a function of the market value of the underlying asset.
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