8. What are the answers to 7a and b if on the day the option expires the price of the stock is $22.50 per share?

the Q7 is: An investor owns a call option on 100 shares of XYZ stock with a strike price of $25. a. Does the investor exercise the option if on the day the option expires the price of the stock is $30 per share? b. What is the cash flow on the day the option expires if the price of the stock is $30 per share?

and the answer of 7 is:

Investor exercise the call as the option since the actual price was more than the opition price. That Is $30 > $25 a) Exercises. call option

b) Cash flow on the day of opition expires was $ 30, so buy $ 25 and sell at $30 so that the gain of $ 5 can be booked. Total cash inflow of profit was 100 * 5 = $ 500.