(Profit margin from underlying asset and a call option) The price of IBM stock on 2 January 2015 was $153.31. On 1 May 2015 the price of IBM was

$172.28.

a. If you purchased the stock on 2 January 2015, what would have been your profit?

b. If you shorted IBM stock on 2 January 2015 and closed out your short position on 1 May 2015, what would have been your profit?

c. A call option on IBM maturing on 1 May 2015 with an exercise price of 160 was traded on 2 January 2015 at a price of $7.80. What is your profit from holding the option in this period?