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An investor buys a call option on EBAY with a strike price 16.0, and a call premium of 1. If EBAY expires at 22, what profit did the investor make?

An investor buys a call option on EBAY with a strike price 16.0, and a call premium of 1. If EBAY expires at 22, what profit did the investor make? Each option covers 100 shares of the underlying stock. 

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The payoff of a call option is max(0, S - X), where S denotes the share price and X denotes the exercise price. Based on... View the full answer

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