stock is currently selling for $$40.$

a$.$ Suppose you buy $23$ contracts of the February $42$ call option. How much will you

pay, ignoring commissions?

Cost

Suppose you buy $23$ contracts of the February $42$ call option. Macrosoft stock is selling

for $$43$ per share on the expiration date.

b$-1.$ How much is your options investment worth?

b$-2.$ What if the terminal stock price is $$42?$

b$-1.$ Payoff if stock price is $$43$

b$-2.$ Payoff if stock price is $$42$