You have purchased a call option (representing 100 shares) with a strike price of $100 and a premium of $5. At the expiration of the option the stock price is $102. Which of the following is correct?

You should exercise the option and you have a $200 profit.

You should exercise the option and you have a $300 loss.

You should exercise the option and you have a $300 profit.

You should not exercise this option and you have a $500 loss.