Suppose a call option over ANZ shares with an exercise price of $34 can be purchased for $0.56.(i)Draw the option's intrinsic value line, indicating when the option is in-, at- and out-of-the-money.(ii)Draw the option's payoff line and indicate the 'break-even' point.

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The Answer of Suppose a call option over ANZ shares with an exercise price of $34 can be purchased for $0.56.(i)Draw the option's intrinsic value line, indicating when the option is in-, at- and out-of-the-money.(ii)Draw the option's payoff line and indicate the 'break-even' point.

Suppose a Call Option Over ANZ Shares with an Exercise