Question: Do not use Excel. Problem 60.4 An investor buys a call option whose underlying asset is a stock index. The strike price is $1020 and

Do not use Excel. Problem 60.4 An investor buys a call

Do not use Excel.

Problem 60.4 An investor buys a call option whose underlying asset is a stock index. The strike price is $1020 and the expiration date is six months. (a) If the spot price at the expiration date is $1100, would the buyer exercise his option? What is his payoff in this case? (b) What if the spot price is $900

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