3. Introduction to option pricing models Aa Aa E A call option gives its owners the right, but not the obligation, to: O Buy a commodity at a specified price and future date, at which time physical delivery occurs Sell a specified number of shares at a certain price within a specified period of time Buy a specified number of shares at a certain price within a specified period of time Sell a commodity at a specified price and future date, but physical delivery does not occur A call option on a single share of Charles Townsend Agency's common stock has a market price of $14.28 and expires in six months. The option has an exercise, or strike, price of $71.00, and the current stock price is $81.45. Select the correct exercise value and time value for this call option in the following table: Exercise value Time Value Suppose the stock's price fell to $68.56 and the option's market price fell to $3.33. Indicate the option's new exercise value and the new time value in the following table: New exercise value New Time Value $3.83 $0.00 $3.33 $10.45