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You write a call option with X = 5 0 and buy a call with X = 6 0 . The options are on the
You write a call option with X and buy a call with X The options are on the same stock and have the same expiration date. One of the calls sells for $; the other sells for $
Draw the payoff graph for this strategy at the option expiration date.
Draw the profit graph for this strategy.
What is the breakeven point for this strategy? Is the investor bullish or bearish on the stock?
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