Value of the call at expiration, Finance Basics

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Value of the call at expiration

You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly three months' time.

a. If the stock is trading at $55 in three months, what will be the payoff of the call?

b. If the stock is trading at $35 in three months, what will be the payoff of the call?

c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.

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Finance Basics: Value of the call at expiration

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Finance Basics: Value of the call at expiration

Reference No:- TGS057142

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Reference No:- TGS057142

Recent Questions Asked Finance Basics

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