Currently a call contract with an exercise price of $10 on a share of List Aerospaces common

Question:

Currently a call contract with an exercise price of $10 on a share of List Aerospace’s common stock is selling for (that is, its premium is) $2. What would the profit or loss graph (similar to that in figure) look like for this option? In drawing this graph, assume that the option is being evaluated on its expiration date. What are the maximum profits, maximum losses, and the break-even point? How would this graph change if the exercise price was $12 and the price (or premium) of the option was $4?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...