Assume that you are going to buy a call option on Pepsi, Inc. You are going to buy a call with an exercise price of $75, that expires in 6 months. The price of this call option is $6.00/share. The current price of Pepsi common stock is $71 per share. Answer all parts on a per share basis

1. (2) Is this option in the money, at the money, or out of the money?

2. (3) If the price of Pepsi in 3 months is $82/share, what is the intrinsic value of your call option then?

3. (3) If at this time (3 months from now) the price of the call option is 9.50, what is the time value of the option?

4. (3) If the price of Pepsi stock in 6 months (immediately prior to expiration) is $81/share, what will the value of your call option be then (on a per share basis)?

5. (3) If the price of Pepsi stock in 6 months (immediately prior to expiration) is instead $68.34/share, what will the value of your call option be then (on a per share basis)?