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