6. Elizabeth Stroud had only a few hours left to decide whether to exercise a call option on Carson Company stock. The call option has an exercise price of $54.

Elizabeth originally purchased the call six months ago for $400 (or $4 per share).

a. For what range of stock prices should Elizabeth exercise the call on the last day of the call's life?

b. For what range of stock prices would Elizabeth realize a net loss (including the premium paid for the call)?

c. If Elizabeth had purchased a put instead of a call, how would your answers to parts

(a) and

(b) change?