Explain Please the Steps

Writing Call Options. A call option on Illinois stock specifies an exercise price of S38. Today's price of the stock is S40. The premium on the call option is S5. Assume the option will not be exercised until maturity, if at all. Complete the following table: 1. Net Profit or Loss per Share to Be Earned Assumed Stock Price at the Time the Call Option Is About to Expireby the Writer (Seller) of the Call Option S37 S39 S41 S43 S45 S48 ANSWER: Assumed Stock Price at the Time the Call Option Is About to Expire S37 S39 S41 S43 S45 S48 Net Profit or Loss per Share to Be Earned by the Writer (Seller) of the Call Option S5 $4 S2 S0 S2 S5