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On June 25, 2012, the spot offer price of Google stock is $561.51 and the offer price of a call option with a strike price

On June 25, 2012, the spot offer price of Google stock is $561.51

and the offer price of a call option with a strike price of $560 and a maturity date of

September is $30.70. A trader is considering two alternatives: buy 100 shares of the stock

and buy 100 September call options. For each alternative, what is (a) the upfront cost, (b)

the total gain if the stock price in September is $620, and (c) the total loss if the stock

price in September is $500. Assume that the option is not exercised before September and

if stock is purchased it is sold in September.

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