5a. You buy a call option on ROCK stock with an exercise price of $96. Today, the stock’s price is $95. The premium on t

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5a. You buy a call option on ROCK stock with an exercise
price of $96. Today, the stock’s price is $95. The premium on the
call option is $3. Just before expiration, the stock’s price is
$100. Will you exercise the option? What is your net profit or
loss? What is the break-even price? (show your work) (2.5
points)
5b. You sell a put option on ROLL stock with an exercise
price of $97. Today, the stock’s price is $95. The premium on the
put option is $2. Just before expiration, the stock’s price is $94.
Will the option be exercised? What is your net profit or loss? What
is the break-even price? (show your work) (2.5 points)
5c. What is the maximum potential gain from selling a
put option? Explain. (1.5 points)