An option's time premium is its value above the intrinsic value. It reflects the value of the holder's option over the length of time listed, and it shrinks as the option approaches the expiration date. Let's say you know a company is going to release its quarterly earnings at the end of the month, which could greatly impact the stock's value. You suspect the earnings will be positive news, so you buy an option to capture any potential upside. First, what kind of option will you purchase? Second, consider two possible scenarios: one, that the stock has a Beta of.85, and the second, that the stock has a Beta of 1.4. Which scenario will have the more expensive option premium, and which will have the cheaper one, and why