You own a call option on Intuit stock with a strike price of $ 45. The option will expire in exactly three? months' time.
a. If the stock is trading at $ 54 in three? months, what will be the payoff of the? call?
b. If the stock is trading at $ 34 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.