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You sell 2 European call option contracts on a share. The premium for one contract is $5. The strike price is $10.5. If terminal price
You sell 2 European call option contracts on a share. The premium for one contract is $5. The strike price is $10.5. If terminal price of the underlying share $9.5 or $10.5$ or 12.5$ (by the maturity).
1) What will be the BEP?
2) What is the payoff for each of the terminal price and NET result?
3) Submit the diagram showing all required items on it (PNL, Terminal Stock price, Payoff line, etc).
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