Call and put option- buyer of the call option point of view

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For all call and put options, answer questions based on per share price, per share premium, and etc. Please be aware that the question is asking from the buyer of the call option’s point of view

1) The market price for Alibaba Group Holding Limited. (Ticker: BABA) was $198.74 when Mark bought a call option today. The call premium is $4.01 and the exercise price is $220. The option will be expired on May 18, 2018.

a) Draw the contingency graph for Mark. Label each point/interaction on the graph.

Reference no: EM131997987

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