Question: You write ( short ) a call option on Tesla stock with an exercise price of $ 2 7 0 . The option expires after

You write (short) a call option on Tesla stock with an exercise price of $270. The option expires
after one month. Assume the option premium is $20.
a. What is the profit on this option if the stock price is $320 at expiration?
b. What is the payoff of this option if the stock price is $245 at expiration?

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