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Suppose you believe that the price of a particular underlying, currently selling at $99, is...

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Finance

Suppose you believe that the price of a particular underlying, currently selling at $99, is going to increase substantially in the next six months. You decide to purchase a call option expiring in six months on this underlying. The call option has an exercise price of $105 and sells for $7.
a. Determine the profit if the price of the underlying six months from now is $99.
b. Determine the profit if the price of the underlying six months from now is $112.
c. Determine the profit if the price of the underlying six months from now is $115.

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