A call option gives its owners the right, but not the obligation, to:

buy a commodity at a specified price and future date, at which time physical delivery occurs.

sell a specified number of shares at a certain price within a specified period of time.

buy a specified number of shares at a certain price within a specified period of time.

sell a commodity at a specified price and future date, but physical delivery does not occur.

A call option on a single share of McMahon and Tate Corp.s common stock has a market price of $14.28 and expires in six months. The option has an exercise, or strike, price of $71.00, and the current stock price is $81.45. Select the correct exercise value and time value for this call option in the following table:

Exercise value

Time Value

Suppose the stocks price fell to $68.56 and the options market price fell to $3.33. Indicate the options new exercise value and the new time value in the following table:

New exercise value

New Time Value