Strike price european call

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Reference no: EM131943026

The CBOE is trading the September gold contract at $5.69 for the $975/oz strike price European call and at $1.35 for the put. Draw the pay off diagrams for the seller of a put option and the buyer of a call option using these numbers. If current market price for gold is $965/oz, is the call option in the money? Make sure you label the graphs properly.

Reference no: EM131943026

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