Question: Please show how you found answer, thank you. 3. Suppose you (option holder) buy a call option on Apple stock with the strike price K-$450

Please show how you found answer, thank you.

3. Suppose you (option holder) buy a call option on Apple stock with the strike price K-$450 from me (option writer) at price of Co-$16 per share today and it expires on October this year. If the stock price becomes $ST $500 on the expiration date, what will be your payoff per share on the expiration day? Note the call option price is the cashflow today, not on the expiration day. 1) SO 2) +$50 3) -S50 4) +S34 5) -$66

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