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

$33.

When you sold (wrote) the option, you received

$3.

The option will expire in exactly three months' time.

a. If the stock is trading at

$51

in three months, what will your payoff be? What will your profit be?

b. If the stock is trading at

$19

in three months, what will your payoff be? What will your profit be?

c. Draw a payoff diagram showing the payoff at expiration as a function of the stock price at expiration.

d. Redo c, but instead of showing payoffs, show profits.