You write one European Microsoft July (expiry date 16 July 2020) 330 call option contract (equalling 100 shares) for a premium of $4 shares. You hold the option until the expiration date, when Microsoft stock sells for $332 per share.

a) How much is the realized profit/loss on the transaction? (3 points)

b) What is the maximum profit that you can realize on this position? Explain your answer! (3 points)

c) What is biggest loss that you can suffer on this position? Explain your answer! (2 points)

d) What is the realized profit/loss of your counterparty (the buyer of this call option)? Explain your answer! (2 points) e) When can you exercise your option? Explain your answer! (2 points)