Mr. Strong bought a call option on the stock of Quick Steel Corporation. The exercise price $40. The call premium is $3 per share. On the expiration date, the market price of the stock of Quick Steel Corporation is $45 per share.

Will Mr. Strong exercise his call option?

Will Mr. Strong make a profit or a loss on this option? What is Mr. Strongs profit or loss per share on the expiration date?

Show your calculations.

Mr. Will is the writer of this option. Will Mr. Will make a profit or a loss on this option? What is Mr. Wills profit or loss per share on this option? Show your calculations.