Suppose you buy call options on Paccar stock. Each option costs $3, has a strike price of $40 and an expiration date of July 1. Would you exercise the option in each of the following situations? (Answer yes or no and why, and give the expected profit or loss assuming you did exercise)
a. It is March 1 and Paccar is trading at $30
b. It is March 1 and Paccar is trading at $41
c. It is March 1 and Paccar is trading at $65
d. It is June 30 and Paccar is trading at $55
e. It is June 30 and Paccar is trading at $41 f. It is June 30 and Paccar is trading at $30.