At which share price do all of the profit lines cross

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Reference no: EM131453799

Question: A share of ABC Corp. sells for $95. A call on the share with exercise price $90 sells for $8.

a. Graph the profit pattern from buying one share and one call on the share.

b. Graph the profit pattern from buying one share and two calls.

c. Consider the profit pattern from buying one share and calls. At which share price do all of the profit lines cross?

Reference no: EM131453799

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