Need help with highlighted - Carol only risks the (purchase/strike) price of the option, $ (700/80/8200). Due to less risk exposure with the (option/stock) purchase, the profitability is correspondingly lower. It would take a stock price decline to $0 for a 100% loss on the (option/stock), but a stock price decline only to the strike price for a 100% loss on the (stock/call option).

a. What will Carol's profit be on the stock transaction if its price does rise to $86 and she sells? b. How much will Carol earn on the option transaction if the underlying stock price rises to $86 ? c. How high must the stock price rise for Carol to break even on the option transaction? d. Compare, contrast, and discuss the relative profit and risk associated with the stock and option transactions. a. Carol's profit be on the stock transaction if its price does rise to $86 and she sells is $400. (Round to the nearest dollar. Enter a negative number for a loss) b. The amount Carol will earn on the option transaction if the underlying stock price rises to $86 is (Round to the nearest dollar. Enter a negative number for a loss) c. For Carol to break even on the option transaction, the stock price must rise to $87. (Round to the nearest dollar.) d. Compare, contrast, and discuss the relative profit and risk associated with the stock and option transactions. (Select the best answers from the drop-down menus.) If Carol actually purchases the stock, she will need to inv and can potentially lose this full amount. In comparison to the option purchase, Carol only risks tr price of the option, Due to less risk exposure with thi surchase, the profitability is correspondingly lower. It would take a stock price decline to $0 for a 100% loss on the but a stock price decline only to the strike price for a 100% loss on the