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You own a call option on Intuit stock with a strike price of $ 3 0 . The option will expire in exactly three months.
You own a call option on Intuit stock with a strike price of $ The option will expire in exactly three months.
a If the stock is trading at $ in three months, what will be the payoff of the call?
b If the stock is trading at $ in three months, what will be the payoff of the call?
c Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.
a If the stock is trading at $ in three months, what will be the payoff of the call?
If the stock is trading at $ in three months, the payoff of the call is $Round to the nearest dollar.
b If the stock is trading at $ in three months, what will be the payoff of the call?
If the stock is trading at $ in three months, the payoff of the call is $
Round to the nearest dollar.
c Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.
Which of the four graphs best represents the payoff diagram? Select the best choice below.
B
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