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Viewed from Left to Right, the Payoff Diagram for a Call

Question 3

Multiple Choice

Viewed from left to right, the payoff diagram for a call option holder:


A) starts below zero with an upward sloping section before flattening out above zero.
B) starts with a flat section above zero and then falls away to the right.
C) starts with a downward sloping section above zero and then flattens out below zero.
D) starts with a flat section below zero and then becomes an upward sloping line to the right.

Correct Answer:

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