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1. The market price for Alphabet Inc. (Ticker: GOOG) was $98.05 when Peter bought a call option today. The call premium is $4.15 and the

1. The market price for Alphabet Inc. (Ticker: GOOG) was $98.05 when Peter bought a call option today. The call premium is $4.15 and the exercise price is $105. The option will be expired on Dec. 16, 2022. (10 points)

a. Draw the contingency graph for Peter. Label x axis, y axis, each point/interaction on the graph.

b. What is the break-even point for Peter?

c. What are Peters maximum profit and maximum loss?

d. Show the profit/loss for Peter if, at the expiration date, the Alibaba price is (1) $90, (2) $108, and (3) $130.

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