1. You believe XYZ stock will likely go up in the near term. The current price is $25. You decide to buy 10 XYZ option contracts with $24 strike price that expires in 6 months. You are paying $2 per share call premium for the option.

1. Whats the intrinsic value of this call option?
2. Draw an option payoff diagram of this long position.
3. If 6 months later, the stock price increases to $28, whats the profit from the option?
4. If the risk free rate is 3%, whats the option put price?