Q1. On July 18, 2009 you bought one call option (i.e., long call) traded on ForeverYours stock. The option price is $6 with expiration date of September 18, 2009, and has an exercise price of $20. The current stock price is also $20.

(1). Given the range of possible stock prices of ForeverYours, are you going to exercise the call option under each stock price scenario on September 18, 2009? (2 points)

2). Calculate the dollar payoffs of the long call position for each scenario. (2 points)

(3). Calculate the dollar amount profits of the long call position for each scenario. (2 points)

ForeverYours Corporation Cost of Call Strike price, X Stock price today, July 18, 2009,S_0 $20.00 stock price on Sep. 18, 2009, ST Exercise the call option? Dollar Payoff from optionsget formula Dollar Profit from options position get formula position C) 10 15 20 25 30 35 ) 45 50