Question: Question 5 a) Describe the distinction between call and put option contracts. b) What does long and short position mean in the option contract a)

Question 5 a) Describe the distinction between call and put option

Question 5 a) Describe the distinction between call and put option contracts. b) What does long and short position mean in the option contract a) A call option contract, maturing in January has a exercise price of S130 with the market price of $138.25. the call option primum is currently selling at $5.00. you will exercise this option and why. Draw the pay-off diagram and identify Break-even price clearly

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