Determine the intrinsic and time value of this call option

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1. A call option on a stock priced at $50 is priced at $6.50. The exercise price of the option is $45. Determine the intrinsic and time value of this call option.

2. You purchase 100 IBM July 120 put options for a premium of $5 per option. You hold the option until the expiration date when IBM stock sells for $123 per share. Determine your net profit or loss.  

3. You write 100 IBM July 120 call options for a premium of $4 per option. You hold the option until the expiration date when IBM stock sells for $126 per share. Determine your net profit or loss.

Reference no: EM132032700

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