What is the payoff at expiration

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Reference no: EM133076616

Consider a call option on Tesla (TSLA) common stock with a strike price of $750.

A. What is the payoff at expiration (on the expiration date) if the market price for TSLA is $771 at that time?

B. What is the payoff at expiration (on the expiration date) if the market price for TSLA is $748 at that time?

C. Draw the payoff diagram for this option.

D. Draw the profit diagram for this option assuming you bought the option for $95.

Reference no: EM133076616

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