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Help understanding the math in options
I'm pretty much new at this and my brother tried explaining it to me, but I'm still trying to figure out the math here. This is what I think is being explained. Can someone please help me figure this out. Also wondering the difference between bid and ask price:
4.00 CIW.X 0.86 Up 0.05 0.88 27,635 So strike is 4.00 and ask is 0.88. I plug in 500 dollars, thus giving me roughly 568 shares. Say the term has ended and it the price is now at an even 5.00, so it went up .12 cents. Now I get confused with all this "add two 0's to everything." What is my profit from this? Can someone lay out the math involved and the process to find it? 
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