Assume you have written a call option on Ford stock with a strike price of $8. The option will expire in exactly six months' time.

a. If the stock is trading at $12 in six months, what will you be your payoff?

b. If the stock is trading at 55 in six months, what will you be your payoff?

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