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11. You own a call option on Intuit stock with a strike price of $45. When you purchased the option, it cost $6. The option
11. You own a call option on Intuit stock with a strike price of $45. When you purchased the option, it cost $6. The option will expire in exactly three months' time. a. If the stock is trading at $63 in three months, what will be the payoff of the call? What will be the profit of the call? b. If the stock is trading at $35 in three months, what will be the payoff of the call? What will be the profit of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. d. Redo c, but instead of showing payoffs, show profits. and the profit of the call is $ a. The payoff of the call is $ (Round to the nearest dollar.) and the profit of the call is $ b. The payoff of the call is $ (Round to the nearest dollar.) c. Choose the correct diagram below. O A 20- 10- 0 10 20 30 40 50 60 70 80 70 80 -10 Stock Price at Expiration (S) OC. 20- 10 Value of the Call ($) 0 10 20 30 40.50 60 -10 -20- Stock Price at Expiration (S) d. Choose the correct diagram below. O A 20 10 $ 0- 10 20 30 20 1050 60/70 80 -10 -203 Stock Price at Expiration (S) Oc. 20 10 Profit of the Call ($) 0- 1020 20 30 40 60 60 - 10- Stock Price at Expiration (S)
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