6. [4 points] Matt purchased 9 call option contracts through his broker. The option price is $4.25. The strike price is $60 and the current share price is $43.42. The options expire in 2 months. a. Using the commission schedule provided in the chapter, what commission does he owe on the purchase of the options? b. Assume the stock price eventually increases to $68 and is exercised at that price, what is Matt's commission on the exercise of the option? C. It will cost Matt 0.50% to sell the underlying stock, what is his net profit? Dollar Amount of Trade Commission* $10,000 $120 + 0.25% of dollar amount *Maximum commission is $30 per contract for the first five contracts plus $20 per contract for each additional contract. Minimum commission is $30 per contract for the first contract plus $2 per contract for each additional contract. Sample Commission Schedule Dollar Amount of Trade Commission* $10,000 $120 + 0.25% of dollar amount *Maximum commission is $30 per contract for the first five contracts plus $ 20 per contract for each additional contract. Minimum commission is $30 per contract for the first contract plus $2 per contract for each additional contract. 6. [4 points] Matt purchased 9 call option contracts through his broker. The option price is $4.25. The strike price is $60 and the current share price is $43.42. The options expire in 2 months. a. Using the commission schedule provided in the chapter, what commission does he owe on the purchase of the options? b. Assume the stock price eventually increases to $68 and is exercised at that price, what is Matt's commission on the exercise of the option? C. It will cost Matt 0.50% to sell the underlying stock, what is his net profit? Dollar Amount of Trade Commission* $10,000 $120 + 0.25% of dollar amount *Maximum commission is $30 per contract for the first five contracts plus $20 per contract for each additional contract. Minimum commission is $30 per contract for the first contract plus $2 per contract for each additional contract. Sample Commission Schedule Dollar Amount of Trade Commission* $10,000 $120 + 0.25% of dollar amount *Maximum commission is $30 per contract for the first five contracts plus $ 20 per contract for each additional contract. Minimum commission is $30 per contract for the first contract plus $2 per contract for each additional contract