10 o Consider a PUT option with the following data: S = 87, E = 90. If the option is selling for 4.20, what is the time value? Oo O 3 O 0.50 O 1.20 None of the above QUESTION 7 For this and the next 3 questions. Suppose a CALL option is selling for $4.75 with an exercise price of $45.50 and 1 month expiration. This option is written on a very volatile stock, current selling for $47 per share. What is the intrinsic value of this call? O $2 $1.50 O $4.75 $3.25 None of the above Calculate the breakeven price of the stock $47.00 $50.00 $50.25 None of the above QUESTION 10 , the option holder should ____ the option. If the option is exercised, the option Suppose however that today is the option's expiration. Since the call option is currently writer's profit would be per share, which is a to the option holder. In-the-money; exercise; $3.25; loss Out-of-the-money; not exercise; $3.25; gain In-the-money; exercise; $3.25; gain out-of-the-money; exercise; $3.25; loss Onone of the above is completely correct QUESTION 11 In general, if an option is out-of-the-money, and the option has about 5 months to expire, the option's time value will likely be Zero Greater than zero Less than zero It could be any of the above