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You own a call option on Intuit stock with a strike price of $45. The option will expire in exactly three months. a. If the

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You own a call option on Intuit stock with a strike price of $45. The option will expire in exactly three months. a. If the stock is trading at $63 in three months, what will be the payoff of the call? b. If the stock is trading at $33 in three months, what will be the payoff 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. If the stock is trading at $63 in three months, the payoff of the call is $. (Round to the nearest dollar.) b. If the stock is trading at $33 in three months, what will be the payoff of the call? If the stock is trading at $33 in three months, the payoff of the call is S. (Round to the nearest dollar.) c. Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Which of the four graphs best represents the payoff diagram? (Select the best choice below.) Q a 20 15 10 5 0 . Cash Flow ($) , Cash Flow (3) .. 5 10 15 20 25 30 35 40 45 50 55 60 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 -10 -15 -20 -10 -15 -20 Stock Price ($) Stock Price ($) a 20 10 OC. Cash Flow (5) OD Cash Flow ($) ............ 5 10 15 20 25 30 35 40 45 50 55 60 0 -5 -10 -15 -20 5 10 15 20 25 30 35 40 45 50 55 60 -20 Stock Price ($) Stock Price ($)

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