The market price of a common share of Widget Inc. closed at $95.49 on Thursday May 18, 2017. You bought one contract of an August 2017 naked call option on Widget at a strike price of $96.00 for a premium of $4.25. Question 48 The price of a common share of Widget is $98.74 just before the close of trading on the day of expiry. At that precise moment in time, the profit of the writer of this naked call option is:

a) $0 b) $325 c) $151 d) ($274) e) None of the above

Question 49 The Break-even point for the investor who went long one contract of this naked call option is:

a) $99.74 b) $102.99 c) $100.76 d) $100.25 e) None of the above

show work for both parts!