4. The spot rate of gold is $1,200 per ounce. Please plot the payoff of buying a call option on an ounce of gold with a $50 premium and the strike price equal to $1,200. Payoff 300 250 200 150 100 50 ° 1000 1100 1200 1300 1400 1500 -50 -100 Price
4. The spot rate of gold is $1,200 per ounce. Please plot the payoff of buying a call option on an ounce of gold with a $50 premium and the strike price equal to $1,200. Payoff 300 250 200 150 100 50 ° 1000 1100 1200 1300 1400 1500 -50 -100 Price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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am. 121.
Transcribed Image Text:4. The spot rate of gold is $1,200 per ounce. Please plot the payoff of buying a call option
on an ounce of gold with a $50 premium and the strike price equal to $1,200.
Payoff
300
250
200
150
100
50
0
1000
1100
1200
1300
1400
1500
-50
-100
Price
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