1. You long a European call option on a security with a strike of $80 and an expiry date at one year later. (a) What is the option payoff at expiry if the security price one year later is $100? What is the payoff at expiry if the security price one year later is $90? level at expiry. position in the call option instead? is this call option in-the-money, out-of-the-money, or at-the-money? What's (b) Plot the option payoff at expiry as a function of the security price (c) How do your answers to (a) and (b) change if you have a short (d) If currently the security price is $100 and its forward price is $101, the option's intrinsic value? (Assume that the interest rate is 5%). (e) How do your answers to (d) change if the current security price is $60 and its forward price is $60.57(Assume that the interest rate is 4%)