Suppose you buy call options on Microsoft stock. Each option costs $2 and has a strike price of $40 and an expiration date of July 1. Discuss whether you would exercise the options in each of the following situations, and why:
a. It is March 1, and Microsoft's stock price is $30.
b. It is March 1, and the stock price is $40.10.
c. It is March 1, and the stock price is $50.
d. It is June 30, and the stock price is $50.
e. It is June 30, and the stock price is $40.10.