A stock that is currently selling for $42 has the following six-month options outstanding:

	Strike Price	Market Price
Call option	$40	$4
Call option	45	1

Which option(s) is (are) in the money?

What is the time premium paid for each option? Round your answer to the nearest dollar.

Call at $40:	$
Call at $45:	$

What is the profit (loss) at expiration given different prices of the stock-$25, $30, $35, $40, $45, $50, and $55-if the investor buys the call with the $40 strike price? Round your answer to the nearest dollar.

Price of the stock	Profit on the call
$25	$
30	$
35	$
40	$
45	$
50	$
55	$

What is the profit (loss) at expiration given different prices of the stock-$25, $30, $35, $40, $45, $50, and $55-if the investor buys the call with the $45 strike price? Round your answer to the nearest dollar.

Price of the stock	Profit on the call
$ 25	$
30	$
35	$
40	$
45	$
50	$
55	$

What is the range of stock prices that will generate a profit if the investor buys the stock and sells the call with the $45 strike price? Round your answer to the nearest dollar.

$

What is the range of stock prices that will generate a profit if the investor buys the stock and sells the call with the $40 strike price? Round your answer to the nearest dollar.

$