11 *P17-13B (Derivative Financial Instrument) The treasurer of JOE Co. has read on the Internet that the stock price of Manchester Inc. is about to take off. In order to profit from this potential development, JOE Co. pur- chased a call option on Manchester common shares on August 21, 2014, for $387. The call option is for 300 shares (notional value), and the strike price is $32. (The market price of a share of Manchester stock on that date is $32.) The option expires on January 31, 2015. The following data are available with respect to the call option. Date Market Price of Manchester Shares Time Value of Call Option September 30, 2014 $36 per share $200 December 31, 2014 37 per share 90 January 4, 2015 33 per share 70