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- The net profit or loss per share to be earned by the writer of the call option is given by
Assume the interest rate is negligible.
| Assumed stock price at the time the call option is about to expire | Net profit or loss per share to be earned by the writer (seller) of the call option |
| $37 | $5 |
| $39 | $4 |
| $41 | $2 |
| $43 | $0 |
| $45 | -$2 |
| $48 | -$8 |
- The net profit or loss per share to be earned by the speculator:
Assume the interest rate is negligible.
| Assumed stock price at the time the call option is about to expire | Net profit or loss per share to be earned by the speculator |
| $50 | -$3 |
| $52 | -$3 |
| $54 | -$3 |
| $56 | -$2 |
| $58 | $0 |
| $60 | $2 |
| $62 | $4 |
- 2301 reads
