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:

FTP

File Transfer Protocol, a standard network protocol used for the transfer of computer files between a client and server on a computer network.

Malfunction Indicator Light

A warning light on a vehicle's dashboard designed to alert the driver of a malfunction in the engine or emission control system.

Emissions

The output of gases or particles released into the environment from an engine or other machinery, often subject to regulations to limit pollution.

Federal Test Parameter

Specific criteria or conditions outlined by federal regulations that are used for conducting tests, usually related to environmental, safety, or performance standards.