The price of a stock is $48. A trader buys 1 call option contract on the stock with a strike price of $50 when the option price is $5. When does the trader make a profit?
a) When the market price of the stock is $55
b) When the market price of the stock is $60
c) When the market price of the stock is $45
d) When the market price of the stock is $40
