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A call option on Illinois stock specifies an exercise price of $38. Todays price of the stock is $40. The premium on the call option

A call option on Illinois stock specifies an exercise price of $38. Todays price of the stock is $40. The premium on the call option is $5. Assume the option will not be exercised until maturity, if at all. Complete the following table:

Assumed Stock Price at the Time Net Profit or Loss per Share to Be Earned

the Call Option Is About to Expire by the Writer (Seller) of the Call Option

$37

$38

$40

$42

$45

$48

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