Question: it is March and a trader writes a September call option with a strike price of $40. The option price is $2.5. Calculate the profitability
it is March and a trader writes a September call option with a strike price of $40. The option price is $2.5. Calculate the profitability (loss) at the following hypothetical prices (Use the table to answer the question).
| Market price | Profit or loss |
| 30.0 | |
| 32.5 | |
| 35.0 | |
| 37.5 | |
| 40.0 | |
| 42.5 | |
| 45.0 | |
| 47.5 | |
| 50.0 | |
| 52.5 | |
| 55.0 |
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