Jorge has purchased call options on 1000 shares of Goldman-Sachs (GS) stock with a strike price of $240 per share. The option premium was $4.00 per share.
a. Compute Jorge's profit or loss if the market value of GS stock is $250 at expiration.
b. Compute Jorge's profit or loss if the market value of GS stock is $230 at expiration.
c. Compute Jorge's profit or loss if the market value of GS stock is $242 at expiration.
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