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Explain how the possible profit and loss possibilities arise for an individual who invests in a:

a. A Call Option

i. Be sure to explain what a Call Option is.

ii. Be sure to incorporate the cost of the Call Option in your analysis.

b. A Put Option

i. Be sure to explain what a Put Option is.

ii. Be sure to incorporate the cost of the Put Option in your analysis.

(Basically pick a random number got the call, a realistic one like $5 and pick a stock price for the sole purpose of simply explaining how a call works, do the same for the put, no need to use excel)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93038244

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