(Call option profits) It is 18 July 2015 and you’ve just bought one call option on ForeverYours stock. The option cost you $6, expires on 18 September 2015, and has an exercise price of $20.

a. Complete the following Excel table below.

b. Make a graph which shows the Profit (column C) on the y-axis and the stock price ST on 18 Sep 15 (column A) on the x-axis.

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A Forever Yours stock price, 18 Sep 15 (ST) 0 5 B Exercise the call option? C Profit 12345678 68 10 15 20 25 30 9 35 10 40 11 12 12 45 50