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9. You have taken a long position in a put option on ABC common stock. The option has an exercise price of $40 and ABC's

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9. You have taken a long position in a put option on ABC common stock. The option has an exercise price of $40 and ABC's stock currently trades at $30. The option premium is $12 per contract a. what is your net profit on the option if ABC's stock price decreases to $25 at expiration of the option and you exercise the option? (3 points) b. How much of the option premium is due to intrinsic value versus time value? (3 points) C. What is your net profit if ABC's stock price increases to $35? (3 points)

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