A company has stock options written on its common stock, with the following characteristics:

Per$-$share stock price $$68$

Exercise price $=$$$65$

Risk$-$free rate $=\{\begin{array}{ccc}\text{:}[5\%& \text{p}\text{e}\text{r}\text{y}\text{e}\text{a}\text{r}\text{,}\text{c}\text{o}\text{m}\text{p}\text{o}\text{u}\text{n}\text{d}\text{e}\text{d}& ]\\ & \text{c}\text{o}\text{n}\text{t}\text{i}\text{n}\text{u}\text{o}\text{u}\text{s}\text{l}\text{y}& \end{array}$

Option maturity $=6$ months

Standard

deviation of $=34\%$ per year

stock returns

a$.$ Calculate the intrinsic value of each option? $($HINT: Notice that the intrinsic value for a call option $($slide $46)$ is identical to the call option payoff line $($slide $14).$ Similarly, for put options, the intrinsic value is identical to its payoff line $($slide $22).)($Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Do not round intermediate calculations.$)$

b$.$ What is the time value premium of each option? $\text{'}($HINT: Just like with call options $($slide $47),$ for put options, the market value of a put option equals the intrinsic value plus the time value premium.$)($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[,,,],[$a$.,$Call option,$$,3-$