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Draw the payoff diagram for these call options

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Reference no: EM133119203

You feel that XYZ stock is a good investment, but don't have the capital to buy a significant number of shares. Instead, you choose to buy 100 call options on XYZ stock with premiums of $2.50 per option. The strike price is $35 and the stock is trading at $32 today. The options expire in 6 months. Draw the payoff diagram for these call options, labeling the strike price, breakeven point, and profit area.

Reference no: EM133119203

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