If the payoff of a call option at a specified price is 5, Finance Basics

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If the payoff of a call option at a specified price is 5

1 .If the payoff of a call option at a specified price is $5, what is the payoff for the call writer at that price? What is the relation between the time to expiration and the value of a:

a. call option?

b. put option?

2 .What is the relation between the volatility of the price of the underlying and the value of a:

a. call option?

b. put option?

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Finance Basics: If the payoff of a call option at a specified price is 5

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Finance Basics: If the payoff of a call option at a specified price is 5

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