Assume that a stock is selling for $47 with options available at 20, 30 and 40 strike prices. The call option is at 7 1/2. Calculate the following: The intrinsic value of the $40 call Is the call in the money? The speculative premium on the 40 call option The percent the speculative premium represents of the common stock price. You buy a 20 year Zero coupon bond, $1000 par value that provides a 12% yield to maturity. Almost immediately after you buy the bond, yield decrease to 9%. What will be the percentage gain on the investment? Please show your work