You have just paid $1,100 to buy one call option contract on Alibaba Group Holding Ltd. (US ticker: BABA) with a strike price of $200 per share expiring on June 19, 2020. BABA closes at $209 on the expiration date. Your profit & loss, and action on that date are:

A) Profit of $900, and you exercise your in-the-money call option

B) Loss of $200, and you exercise your in-the-money call option

C) Profit of $900, and you do not exercise your out-of-the-money call option

D) Loss of $200, and you do not exercise your out-of-the-money call option

E) Profit of $1,100, and you exercise your in-the-money call option.

Company A requires a fixed-rate investment; company B requires a floating-rate investment. The two companies have been offered the following annual rates of return:

Company	Fixed Rate	Floating Rate
A	7%	LIBOR
B	8%	LIBOR

A bank charges 0.2% per year to structure a swap equally attractive to companies A and B. The swap enables the companies to earn the following annual rates of return:

A) A: LIBOR 0.4%; B: 8.4%

B) A: 7.6%; B: LIBOR + 0.6%

C) A: LIBOR 0.6%; B: 8.6%

D) A: 7.4%; B: LIBOR + 0.4%

E) None of the above

Please show calculation/Explanation