Draw a diagram to show the variation in the investors profit

Reference no: EM131311606

a) An investor buys European call on a share for sh 5. The share price is sh 90 and the strike price is sh 85. Under which circumstances does the investor make profit? When will the option be exercised? Draw a diagram to show the variation in the investors profit and the share price at the maturity of the option.

Reference no: EM131311606

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