OT Formulae.docx on 1 A six-month call option on 100 shares of ABC Company is selling for $30. The strike price for the option is $4. The share is currently selling at $3.80 per share. (i) Ignoring brokerage fees, what price must the share achieve just to cover the expense of the option? (1 mark) (ii) If the share price rises to $4.75 at the time of expiration, what will the net profit on the option contract be? (2 mark)