Course name Financial Derivatives, No handwriting, Explain your answer , do not copy paste wrong answers

Q3. The following call option prices were observed for a stock on July 6 of a particular year. (5 Marks)

Strike Price	Call
	July	August
155	11.00	11.80
160	6.50	8.00
165	2.80	5.50
170	0.90	3.50

The stock is priced at 165.5(S₀) and ignore dividends on the stock. The expirations are July 17 and August 21.

Compute the intrinsic values and time values of the following calls. Treat these calls as American options for purposes of determining the intrinsic value and time values.

1. July 155
2. July 160
3. July 170
4. August 160
5. August 170