Question $1$

Define a Call Option and answer the following questions:

What is the payoff function of a long position in a Call Option?

When is a Call Option exercised?

When does a long position in a Call Option generate a profit?

What is the payoff function of a short position in a Call Option?

Is a Call Option a zero$-$sum game?

What is the difference between a European Call Option and an American Call Option?