What will be the payoff of the call

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Reference no: EM131185063

You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly three months’ time. a. If the stock is trading at $55 in three months, what will be the payoff of the call? Show all work. b. If the stock is trading at $35 in three months, what will be the payoff of the call? Show all work. c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration

Reference no: EM131185063

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