You own a call option on Intuit stock with a strike price of

$44.

When you purchased the option, it cost

$6.

The option will expire in exactly three months' time.

a. If the stock is trading at

$60

in three months, what will be the payoff of the call? What will be the profit of thecall?

b. If the stock is trading at

$32

in three months, what will be the payoff of the call? What will be the profit of thecall?

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.