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You expect FinanceRocks Corp.s stock prices to increase above the current stock price level of $32. In order to take advantage of this expectation, you

You expect FinanceRocks Corp.s stock prices to increase above the current stock price level of $32. In order to take advantage of this expectation, you purchase a call option on FinanceRocks Corp.s stock, with an exercise price of $35 and a premium of $4 per share. Just before the expiration, stock price rises to $36. Should you exercise the call option? Based on your decision, what will the total payoff per share be?

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Exercise; Total Payoff per share is $7 loss

Exercise; Total Payoff per share is $3 loss

Do not exercise; Total Payoff per share is $7 loss.

Do not exercise; Total Payoff per share is $4 loss.

Do not exercise; Total Payoff per share is $3 loss.

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