Assume that you have shorted a call option on Intuit stock with a strike price of $40. The option will expire in exactly three months' time.

a. If the stock is trading at $55 in three months, what will you owe?

b. If the stock is trading at $35 in three months, what will you owe?

c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.

a. If the stock is trading at $55 in three months, what will you owe?

If the stock is trading at $55 in three months, you will owe ____ .

(Round to the nearest dollar.)

b. If the stock is trading at $35 in three months, what will you owe?

If the stock is trading at $35 in three months, you will owe _____ .

(Round to the nearest dollar.)

c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration.