1. The current stock price of TimBuk2 is $34.66. You have the following quotes on TimBuk2 options:

Expiration	Price	Calls	Puts
July	36	0.30	1.85
August	33	2.37	0.89

a) Which options are in the money?

b) What is the exercise value of a July call option with a strike price of $36?

c) Suppose you buy 10 contracts of the August call option. How much will you pay, ignoring commissions?

d) In part (c) suppose that TimBuk2 stock is selling for $50 per share on the expiration date. Ignoring the premium paid, how much is your option investment worth? What if the stock price is $25?

e) Suppose you buy 10 contracts of the July put option. What will your profit be if the stock price goes to $0.01?