17. What is the time value of ABC August 40 put trading for a premium of $8, if ABC stock trades for $37.50 ? a. $0 b. $2.50 c. $5.50 d. $8.00 e. None of the above 18. An investor writes a GHI November 30 put for $4. GHI drops to $20, and the put is exercised. What is the investor's gain or loss ? a. $600 gain b. $600 loss c. $1,400 gain d. $1,400 loss e. None of the above 19. An investor buys 100 XYZ stock for $50 per share, and also buys 1 XYZ December 45 put for $7. XYZ stock declines to $30, and the investor exercises his put and sells the stock. What is the investor's gain or loss? a. Zero, he/she is fully hedged b. $1,200 gain c. $1,200 loss d. $2,000 loss e. $2,000 gain 20. If XYZ stock is trading at $48.25 per share what is the time value of the XYZ December 45 call trading for a premium of $8.50 ? a. Zero b. $8.50 c. $5.25 d. $3.25 e. None of the above