What is the break-even point for strategy

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Reference no: EM131579128

You write a call option with X=40 and buy a call with X=50. The options are on the same stock and have the same expiration date. One of the calls (X=50) sells for 3$; the other sells for $9.

(1) Draw the payoff graph for this strategy at the option expiration date.

(2) What is the break-even point for this strategy?

Reference no: EM131579128

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