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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

  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 (i.e. two decimal places).
  2. 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 time value of the option? Enter your answer to the nearest cent (i.e. two decimal places).

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