A June $55 call option on Encana was purchased for $2.00 per share. Encana is currrently selling for $52.60 per share.

A June $55 eall copion on Enears was purchased for $2.00 per thare. Fecana is currently selling for 552.60 per share. Answer: in (Dut) 52,60 per share (Cincle One) 2. What's the Intrinsic Valoe for the optiont Answer: 5 ( 3. What's the Time Promium of the option? Answer: $200 4. What's the break-even point for the option at maturity? Answer, ECA has to be 5 ? , o0 per shafe at maturity for the buyer to break-even. 5. Dew the break-even graph for the buyer of the option (not the writer). Be sure to label the aves, 6. Whar's the net gain or loss for the buyer of the option if ECA is $85 at maturity? Answer (Net Gain Loss (circle one) of 52,800 7. Which of the Encana calls are out-of-the-money? Answer: The calls with strikes of 53 and higher are out-of-the-money