What would the profit or loss graph look like for option

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Reference no: EM131512029

Currently a call contract with an exercise price of $10 on a share of List Aerospace's common stock is selling for (that is it's premium is) $2. What would the profit or loss graph look like for this option? In drawing this graph, assume that the option is being evaluated on its expiration date. What are the maximum profits, maximum losses, and the break even point? How would this graph change if the exercise price was $12 and the price (or premium) of the option was $4?

Reference no: EM131512029

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