Calculate the intrinsic value and time value from the mid-market (average of bid and offer) prices the July 2012 call options in Table 1.2 Do the same for the July 2012 put options in Table 1.3. Assume in each case that the current mid-market stock price is $561.40

Table1.2 Prices of call options on Google, June 25, 2012; stock price: bid $561.32; offer $561.51

Srike price ($)	July.2012	July.2012	Sept. 2012	Sept.2012	Dec 2012.	Dec. 2012
	Bid	Offer	Bid	Offer	Bid	Offer
520	46.50	47.20	55.40	56.80	67.70	70.00
540	31.70	32.30	41.60	42.50	55.30	56.20
560	20.00	20.40	30.20	30.70	44.20	45.00
580	11.30	11.60	20.70	21.20	34.50	35.30
600	5.60	5.90	13.50	13.90	26.30	27.10

Table 1.3 Prices of put options on Google, June 25, 2012; stock price: bid $561.32; offer $561.51

Strike price ($)	July.2012	July. 2012	Sept. 2012	Sept. 2012	Dec. 2012	Dec. 2012
	Bid	Offer	Bid	Offer	Bid	Offer
520	5.00	5.30	13.60	14.00	25.30	26.10
540	10.20	10.50	19.80	20.30	32.80	33.50
560	18.30	18.70	28.10	28.60	41.50	42.30
580	29.60	30.00	38.40	39.10	51.80	52.60
600	43.80	44.40	51.10	52.10	63.50	64.90