Suppose you believe that Bennett Environmental's stock price is going to increase from its current level of $ 34.06 sometime during the next 7 months. For $ 224.53 you could buy a 7-month call option giving you the right to buy 100 shares at a price of $27.50 per share. If you bought a 100-share contract for $ 224.53 and Bennett's stock price actually changed to $ 28.55 , your net profit (or loss) after exercising the option would be