Answer: Zero.

The payoff for a call option buyer at expiration is calculated as \(C_T = \text{Max}(0, S_T - X)\), where \(C_T\) is the call option's value, \(S_T\) is the stock price at expiration, and \(X\) is the strike price. In this scenario, \(S_T = 22\) and \(X = 27\), so \(C_T = \text{Max}(0, 22 - 27) = 0\). The premium paid (\(C_0 = 4\)) is not part of the payoff calculation but affects the investor's profit, which would be negative (\(-4\)) in this case.

Author: LeetQuiz Editorial Team