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You own a call option on Intuit stock with a strike price of $41. When you purchased the option, it cost you $5. The option
You own a call option on Intuit stock with a strike price of $41. When you purchased the option, it cost you $5. The option will expire in exactly three months' time. a. If the stock is trading at $46 in three months, what will be the payoff of the call? What will be the profit of the call? b. If the stock is trading at $36 in three months, what will be the payoff of the call? What will be the profit of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. d. Redo (c), but instead of showing payoffs, show profits
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