Given the following information for a call option Exercise price Premium Jan. 2021 April 2021 $40 $3.2
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Question:
Given the following information for a call option
Exercise price
Premium
Jan. 2021
April 2021
$40
$3.2
$3.6
$50
$3.0
$3.3
$60
$2.5
$2.8
Required
If an investor chooses to be buyer at $40 on Jan. 2021 and writer at $50 on Jan. 2021, calculate the net outcome for the investor if the market price on expiration date is $20, $40, and $70?
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