29. Taking advantage of the right embodied in an option is known as: a. straddling b. exercising c. spreading d. discounting e. striking 30. Which of the following is not a characteristic of put and call options? a. They are contracts to buy or sell 100 shares of common stock. b. There is always a specified price. c. There is always a specified time period. d. All of the above are characteristics. 31. If IBM April 40 call options are priced at 5.75 when the underlying price of IBM is 42, then: a. the intrinsic value of the option is 3, and the time premium is 2.75 b. the intrinsic value of the option is 2.75, and the time premium is 3 c. the intrinsic value of the option is 0, and the time premium is 5.75 d. the intrinsic value of the option is 5.75, and the time premium is 0. t share of stock that you do not own, you have created a 32. If you write a call option agains a. naked option b. out of the money option c. in the money option d. premium e. covered option