9-3 (c only)

You have taken a long position In a call optlon on IBM common stock. The option has an exercise price of $139 and IBM's stock currently trades at $145. The option premlum is $7 per contract. a. How much of the option premium is due to intrinslc value versus time value? b. What is your net profit on the option if IBM's stock price Increases to $155 at explration of the option and you exercise the optl c. What is your net profit if IBM's stock price decreases to $135 ? x) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. b. What is your net profit on the option if IBM's stock price increases to $155 at expiration of the option and you exercise the option? c. What is your net profit if IBM's stock price decreases to $135 ? (Negative amounts should be indicated by a minus sign.)