Plot the contingency graph for the option be sure to label, Financial Management

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Plot the contingency graph for the option be sure to label

Consider a call option on Activision Blizzard (ATVI) that matures on November 17.

The option has a strike price of $55 and a premium of $2.50.

a. Plot the contingency graph for the option. Be sure to label maximum gains/losses, the breakeven point, and moneyness for both the buyer and seller.

b. At maturity, ATVI shares are trading for $45. What are the profits to the buyer and seller?

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Financial Management: Plot the contingency graph for the option be sure to label

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Financial Management: Plot the contingency graph for the option be sure to label

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