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Frank purchases 20 PQR December 70 put options at the current price of $2.50. PQR stock is currently trading at $69.00 per share. Answer the

Frank purchases 20 PQR December 70 put options at the current price of $2.50. PQR stock is currently trading at $69.00 per share.

Answer the following questions:

a) Is Frank hoping PQR goes up or down in value? Explain. (1 mark)

b) How much time value do Frank's option contracts currently have? (1 mark)

c) Suppose Frank sells his 20

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