(1) An investor buys a call option to buy 100 shares of Apple. Strike price = $100, current stock price = $98, price of an option to buy 100 shares = $5. What's the profit and payoff if the stock price is $115 at the expiration? What's the profit and payoff if the stock price is $95 at the expiration? Calculate the payoff and profits and draw the payoff (not profit) diagram. (5 points) (2) Today, the price of Apple stock is currently $70. It is known that at the end of 12 months it will be either $65 or $95. The risk-free interest rate is 4%. What kind of option should you buy if you would like to sell the stock at the price of $75? Calculate the value of this option. (10 points)