6) According to the Black-Scholes option pricing model, what factors are important for pricing options? a) IBM's stock price is at S100 per share. A June 100 call option (exercise price 100) is trading for $3 a share. What is the intrinsic value and what is the time premium? Explain why it has a positive price? b) If on May 1, 2009, three call options on Richmond Associates stock, all expiring in December 2009, sold for the following prices: Exercise Price Option Premium $50 $60 $70 S7.50 $3.00 S1.50 You buy one call with S50 exercise price, sell (write) two calls with $60 exercise price, buy one call with $70 exercise price. What is your net profit (loss) if Richmond Associates' stock price is $54 at expiration