1. A call option has an option premium of $4, a strike price is $50, there is 2 months until expiration, and the stock price is currently $53. What is the intrinsic value of the option? Enter your answer to the nearest cent (two decimal places)
2. Barrack buys a call option on Netflix stock. At the time he buys the option, Netflix stock is trading for $525. The option premium is $32 for a call option with a strike price of $530 and expiration in one month. Suppose on the expiration date that the price of Netflix is $529. What is Barracks profit or loss (in dollars)? (two decimal places)