A June $55 put option on Encana was purchased for $4.00 per share. Encana is currently selling for $52.60 per share.

A June $55 put option on Encana was purchased for $4.00 per share. Encaina is currently selling for $52.60 per share. 1. By how much is the put option in-the-money or out-of-the-money? Answer(Iin) Out by s2.40 per share (Circle One) 2. What's the Intrinsic Value for the option? Answer: $240 3. What's the Time Premium of the option? Answer: $ l 60 4. What's the break-even point for the option at maturity? Answer: ECA has to be $51.00 per share at maturity for 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 $20 at maturity? Answer.Net Gain Loss (circle one) of 3,100 7. Which of the Encana puts are in-the-money? Answer: The puts with strikes of 5H i kes of 53 and are in-the-money