change the exercise price from $89 to $90. provide explanation for answers

12. You have purchased a call option contract on Johnson \& Johnson common stock. The option has an exercise price of $89.00 and J \& J's stock currently trades at $90.43. The option premium is quoted at $2.17 per contract. (LG104() a. Calculate your net profit on the option contract if J&J 's stock price rises to $94.00 and you exercise the option. b. Calculate your net profit on the option contract if J&J 's stock price falls to $89.50 and you exercise the option. c. If J&J 's stock price falls to $89.50 show that it is more profitable to exercise than not exercise the option you have purchased