An investor writes a December call option with a strike price of $30. The price of the option is $4. Under what circumstances does the investor make a gain?

Select one:

a.

The investor makes a gain if the price of the stock is below $34 at the time of exercise.

b.

The investor makes a gain if the price of the stock is above $34 at the time of exercise.

c.

The investor makes a gain if the price of the stock is below $30 at the time of exercise.

d.

The investor makes a gain if the price of the stock is above $30 at the time of exercise.