Business
Business, 28.01.2020 07:31, anjoliej9

You have purchased one call option expiring in one year with a strike price of $40. the current price of the underlying is $30, the interest rate is zero, and the premium for the call option is $2.63.

(1) draw the payoff and p& l diagrams for the call option at expiration.
(2) what is the p& l on the option at expiration if the underlying is $57.50 (i. e. s, = 57.5)?

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Answers: 3

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You have purchased one call option expiring in one year with a strike price of $40. the current pric...

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