As shown above answer question 15 and show all work and steps.

oIl llat Would occur today. What is the price of the transaction 15. Time Value of Options You are given the following information concerning options on today? a particular stock: Stock price $83 Exercise price = $80 Risk-free rate Maturity Standard deviation 6% per year, compounded continuously 6 months 47% per year a. What is the intrinsic value of the call option? Of the put option? b. What is the time value of the call option? Of the put option? c. Does the call or the put have the larger time value component? Would you expect this to be true in general