Jim buys a call option on 123 stock for a premium of $4, with an exercise price of $28 when the stock is priced at $29. The stock price on the expiration date is $32. The price of 123 stock has ranged from $5 to $45 over the past twelve months and several stock analysts think the stocks price will drop at the end of the year.

At what stock price will Jim breakeven on the option?

What is Jim's profit/loss on the option on the expiration date?

At expiration is the option in-the-money (ITM), at-the-money (ATM), out-of-the-money (OTM), or cannot be determined (CBD).