5) You are bullish on Neflixs stock (NFLX) which is currently selling for $359.70. You have decided to buy a 6-month call option contract with a strike price of $370. It costs $33.30 per share to buy the option. Assume the 6-month risk-free rate is 1% per annum with continuous compounding. Note the contract is for 100 call options.

a. Calculate what the payoff and profit at expiration for the long call if the NFLX price at expiration is _____. i. $365 ii. $393 iii. $405

b. Draw the profit and payoff function for the long call option at expiration. Label the points calculated in part a. (Provide labels for the axes)

c. Do parts a & b for a short call option at expiration?