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What would be the pre-tax net profit

Question: A reliable source has told you Johnson Company's stock price will increase from where it is now at $22.50 at an undetermined point over the coming 5 months. For $310.25 now you could buy a 5-month call option which lets you buy 100 shares at $25/share. Suppose you purchase that option for $310.25 and Johnson's stock price does indeed rise to $45, what would your pre-tax net profit be?

A. -$310.25

B. $1,689.75

C. $1,774.24

D. $1,862.95

E. $1,956.10

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Accounting Basics: What would be the pre-tax net profit

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