The current stock price of Apple is $X+80 (i.e., X is the last two digits of your student ID. If your ID is 12345678, then X = 78), There is a six-month European call option on the Apple shares on the exchange, with a strike price of $120. The risk-free rate is 7% per annum with continuous compounding.

(a) What is your X? What is the gross payoff of this call option on the current day? (1 mark)

(b) Is this an ATM call, ITM call, or OTM call when you buy it today? (1 mark)

(c) At the maturity date, if the stock price is $120, will you prefer to exercise the call option? (1 mark)

(d) If Apple stocks pay out $1 per share cash dividends at the end of each quarter. Will your action in question (c) be changed if this is an American call? Explain your reasons briefly without calculation. (1 mark)