Assume that a stock is selling at a price of $100. The 95 call option on the stock sells for $5 and the 105 put option sells for $8.

What is the intrinsic and time value on the 95 call and $105 put?

If the stock increases to $110, what will be the dollar and percentage return on the call option. What will be the return on the put option?

Assume that the investor writes a call option on the above stock. What will be the investors gain or loss if the stock closed at $100?

Assume that the investor writes a put option on the above stock. What will be the gain or loss if the stock sells for $110?