A June $50 put option on Encana was purchased for $1.20 per share. encana is currently selling for $52.60 per share.

A June $50 put option on Encana was purchased for $1.20 per share. Encana is currently selling for $2.60 per share. 1. By how much is the put option in-the-moncy or out-of-the-money? Answer: In Outby $2.60 per share (Circle One) 2. What's the Intrinsic Value for the option? Answer: $ 3. What's the Time Premium of the option? Answer: $120 4. What's the break-even point for the option at maturity? Answer: ECA has to be 48.80 per share at maturity fon the buyer to break-even. 5. Draw the break-even graph for the buyer of the option (not the writer). Be sure to label the axes. 6. What's the net gain or loss for the buyer of the option if ECA is $10 at maturity? Answer:(NetGain/Loss(circleone)of$3880 7. Which of the Encana puts are out-of-the-money? Answer: The puts with strikes of 52 and laver are out-of-the-money