. Hedging with stock options Puppose that Newark Pension Fund purchased Critico stock at the market price of $120 per share, and to hedge against what they think will be a emporary decline in Critico's stock price, Newark sells call options on Critico stock with an exercise price of $119 per share for a premium of $3 per hare. Assume that Newark Pension Fund sells its shares at the expiration date no matter the market price at the time. Use the previous information to determine the prices Newark Pension Fund will sell Critico's stock for, as well as the profit they earn, at each given expiration date market price. (Hint: Assume the call option will be exercised only if the expiration date market price is greater than or equal to the exercise price plus the call premium.) Market Price of Critico as of the Expiration Date (per share) Profit Price at which Newark Pension Fund Sells Critico Stock (per share) Call Option Premium (per share) Initial Critico Stock Purchase Price (per share) (per share) $ $116 S $3 $120 $117 S $3 $120 5 $118 S $3 5120 $ $119 $ $3 $120 S $120 S $3 $120 s $121 S $3 5120 S 5122 S3 5120 S $123 S $3 $120 S 5124 $3 5120 5 $125 53 $120