Consider a stock priced at $30 with and the compounded risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 (premium) and the puts cost $2.15 (premium). There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options).

A. What is your profit if you buy a call, hold it to expiration and the stock price at expiration is $37?

B. What is the breakeven stock price at expiration on the transaction for the call?

C. Suppose the investor constructed a covered call. At expiration the stock price is $26. What is the investor's profit?

D. What is your profit if you buy a put, hold it to expiration and the stock price at expiration is $27?

E. What is the breakeven stock price at expiration on the transaction for the put?

F. Suppose the investor constructed a protective put. At expiration the stock price is $25. What is the investor's profit?