Now let’s say you believe ikea stock will increase in the price of $40/share, so you decide to purchase a may call option for 200 shares for a 30-day time limit. assume that 1 call option contract equals 100 shares and the call premium per share is $3/share (6 points total)
a. are you the long call or short call option? are you the buyer or seller?
b. how much will you spend on the entire call option contract? assume the price of the share increased to $80 per share,
c. would you exercise the call option?
d. how much would be your gain or loss? assume the price of the share decreased to $20 per share,
e. would you exercise the call option?
f. how much would be your gain or loss?

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer