1. ABC stock is currently trading at a market price (S) of $50. You do not own the stock, but you are long a put option on 1 share with a strike price (X) of $43. The cost put (premium) was $2.
   1. The value of an option is composed of Intrinsic Value and Time Value. How you split the $2 premium up between these two components?
      1. Time Value = ? and ii. Intrinsic Value = ?
   2. Using Excel or drawing by hand, create a payoff diagram for this put option using a range of $30 to $60 along the x-axis. Show on the graph where the 1) current price (S), 2) strike price (X) and breakeven point.