5. Both a call and a put currently are traded on stock XYZ; both have strike prices of $40 and expirations of 6 months.

a. What will be the profit to an investor who buys the call for $5.0 in the following scenarios for stock prices in 6 months? (a) $40; (b) $45; (c) $50; (d) $55; (e) $60 (10 points)

b. What will be the profit to an investor who buys the put for $7.5 in the following scenarios for stock prices in 6 months? (a) $40; (b) $45; (c) $50; (d) $55; (e) $60. (10 points)