Question: Can I get Answer for the below questions Exercise 2 (Risk management/ options) (14 points) Futures and options are used for price risk management. a)

Can I get Answer for the below questions

Exercise 2 (Risk management/ options) (14 points) Futures and options are used for price risk management. a) Please briefly explain the content of a call long option. b) The following figure shows the intrinsic value (--) of an option position at exercise date T. E: exercise price ST : price of underlying at t=T 1. Please classify the option position (type of option plus long/short). 2. Please briefly explain the St-expectation of an investor who holds this option position. 3. Please add a profit-and-loss function considering the premium payment (t=0) in the figure

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