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What will be the payoff of the? call

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Reference no: EM132804410

You own a call option on Intuit stock with strike price of $36. The option will expire in exactly three? months' time.  

Problem a. If the stock is trading at $50 in three? months, what will be the payoff of the? call?

Problem b. If the stock is trading at $30 in three? months, what is the value of the? call?

Problem c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration.

Reference no: EM132804410

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