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2. You own a call option on Intuit stock with a strike price of $32. The option will expire in exactly three months. a. If

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2. You own a call option on Intuit stock with a strike price of $32. The option will expire in exactly three months. a. If the stock is trading at $41 in three months, what will be the payoff of the call? b. If the stock is trading at $18 in three months, what will be the payoff 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. a. If the stock is trading at $41 in three months, what will be the payoff of the call? If the stock is trading at $41 in three months, the payoff of the call is $ (Round to the nearest dollar.) b. If the stock is trading at $18 in three months, what will be the payoff of the call? If the stock is trading at $18 in three months, the payoff of the call is $ . (Round to the nearest dollar.) c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Which of the four graphs best represents the payoff diagram? (Select the best choice below.) A. B. C. D

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