Given the Following Information

question 31

Essay

Given the following information,
a. The intrinsic value of the call is _________.
b. The intrinsic value of the put is _________.
c. The time premium paid for the call is _________.
d. The time premium paid for the put is _________.
At the expiration of the options (i.e., after six months have lapsed), the price of the stock is $45.
e. The profit (loss) from buying the call is _______.

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Definitions:

Cost Of Goods Manufactured

The manufacturing costs associated with units of product that were finished during the period.

Job-Order Costing

An accounting method used to track costs and revenues by specific jobs or orders, commonly used in industries with customized products.

Direct Labor Costs

The wages and benefits paid to workers who are directly involved in the manufacturing of products.

Cost Of Goods Manufactured

The total production cost of the goods completed and transferred out of the work-in-process inventory during a specific period.