Question: Question Help You are long two calls on the same share of stock with the same exercise date. The exercise price of the first call
Question Help You are long two calls on the same share of stock with the same exercise date. The exercise price of the first call is $43 and the exercise price of the second call is $62. In addition, you are short two otherwise identical calls, both with an exercise price of $58. Plot the value of this combination is a function of the stock price on the exercise date Which of the graphs below best represents a payoft diagram showing the value of the first long call with an exercise price of $43 at expiration as a function of the stock price at expiration? (Select the best choice below) Q Long Call Q 20 Long Call Cash Flow (5) 49 OB Cash Flow (5) o 35 40 45 50 55 60 65 70 75 80 350 45 50 55 60 65 70 75 80 Stock Price (5) Stock Price (5) Click to select your
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