7. Assume that a call option has an exercise price of $1.70/. At a spot price of $1.62/, the call option has a. a time value of $0.08. b. a time value of $0.00. c. an intrinsic value of $0.00. d. an intrinsic value of $0.08. 8. The beginning share price for a security over a three- year period was $100. Subsequent year-end prices were $124, $116 and $128. The arithmetic average annual rate of return and the geometric average annual rate of return for this stock was a. 9.30% and 8.78% respectively. b. 9.30% and 7.89% respectively. c. 9.30% and 7.03% respectively. d. 9.30% and 6.37% respectively