4. For a call option on IBM, (a) if the current market price is $108 per share, the strike price is $95 per share, and the option value is $15 per share, how much is this option's intrinsic value and time value? (b) What if the spot drops to $93, and option price drops to $3? (c) Which option (a) or (b) is in the money? Which one is out of the money? 5.For a put option on IBM, (a) if the current market price is $108 per share, the strike price is $110 per share, and the option value is $5 per share, how much is this option's intrinsic value and time value? (b) What if the spot increases to $115, and option price drops to $1? (c) Which 6. Look at your answers in Q4 and Q5 above, why are out-of-money options not completely worthless