I know of the pay-off of a long call option position is Max[0, S - K], the profit & loss of the same position is Max[-Premium , S - K - Premium]. But i don’t know what the CFA Institute are meaning here by “Value and profile”, the right answer is B, which is the profit, but… Why are they calling it “Value and profile”?
No sane person knows.
It appears that they may have meant, “profit”, not “profile”.
Bill seriously some of the qs. and wording thereof ( not to mention the catchphrases and the paraphrases) can throw anybody off. I mean from the CFAI…. not to mention the cat in the lap APPs
My comment was based on a couple of subsequent questions in which they used the phrase “value and profit”.