Hey Please help me with these questions. Also if a personal tutor can get in touch that would be great

Question 1 Introduction (50 points total) Say that on a recent day, Wal-Mart stock closed at $55.19 per share, down $.05 on the day. Consider the following chart giving the premium as of close of trading on that day, on various options on Wal-Mart stock: PS06-Q01.pdf In the questions that follow, use the \"Last Sale\" column to answer questions which involve option pricing. Question 1 5 pts 1a. What was the premium on the Jun. '16 WMT 47.50 call, i.e., the Wal-Mart call which expires in Jun. '16 and has a strike price of $47.50? Question 2 5 pts 1b. How much would an investor who wanted to buy 1 contract of this option have had to spend? Question 3 10 pts 1c. What is the formula for the intrinsic value of a call? What was the intrinsic value of the May. '16 WMT 50 call? Was this option \"in the money\" or \"out of the money\"? What was the time value of this option? Question 4 10 pts 1d. Was the Jun. '16 WMT 60 call in or out of the money? What was the intrinsic value of this option? What was the time value of this option? Question 5 10 pts 1e. What was the premium on the Jun.'16 WMT 60 put? Was this option in or out of the money? What was the intrinsic value of this put? What is the time value? Question 6 10 pts 1f. What was the intrinsic value of the May.'16 WMT 50 put? Was this option in or out of the money? What was the option's time value? Question 2 Introduction (50 Points) ErenCo is an up-and-coming stone quarry company. A recent report, reflecting the general sentiment of all market participants, projected the following prices and probabilities for ErenCo stock on May. 17, 2016: Probability 1/3 1/2 1/6 Stock Price $15 $10 $6 For each of the following questions, be sure to show all of your work. Question 7 25 pts 2a. According to the EMH, what would you expect the market price of ErenCo stock to be today? Why? Question 8 25 pts 2b. Nancy, an investor in ErenCo, decides to buy a put option on ErenCo stock with a strike price (exercise price) of $9 which expires on the third Friday of May, 2016. What would she have to pay in today's market for this option? In general, what determines the price an investor will have to pay for an option? WMT (WAL\tMART\tSTORES\tINC) 55.19 -0.05 Last Sale Calls Ask Vol Open Int Last Sale Puts 224 16\tMay\t45.00\t(WMT\tXI-E) 7.56 0 7.7 8.1 0 611 16\tMay\t47.50\t(WMT\tXW-E) 0 0.02 0.32 0.08 0.01 5.25 5.35 290 5611 16\tMay\t50.00\t(WMT\tXJ-E) 2.83 2.89 15093 16\tMay\t52.50\t(WMT\tXX-E) 0.85 0.89 34325 16\tMay\t55.00\t(WMT\tXK-E) 0.12 0.14 182 167 2 222 0 20681 16\tMay\t57.50\t(WMT\tXY-E) 0.01 0.04 114 35895 0.01 0 0 0.03 0 0.02 0 0 0.02 0 0.01 0 0 0.02 0 0.02 0 0 0.02 0 4431 16\tMay\t70.00\t(WMT\tXN-E) 0.01 0 0 1057 16\tMay\t75.00\t(WMT\tXO-E) 0 0 215 16\tJun\t42.50\t(WMT\tMV-E) 0.45 16 10.6 5 0.01 16.1 5 0 12.82 16\tMay\t57.50\t(WMT\tLY-E) 10.8 55 41905 8.82 1.02 8.4 8.55 1 4946 -0.2 0.15 0.34 0.12 0.04 0.07 0.03 0.01 0.02 6.3 6.4 44 68621 16\tJun\t50.00\t(WMT\tMJ-E) 4.45 4.55 121 3230 16\tJun\t52.50\t(WMT\tMX-E) 2.88 2.94 535 49005 16\tJun\t55.00\t(WMT\tMK-E) 1.68 1.73 192 4390 16\tJun\t57.50\t(WMT\tMY-E) 0.88 0.92 495 67068 16\tJun\t60.00\t(WMT\tML-E) 0.4 0.44 432 3725 16\tJun\t62.50\t(WMT\tMA-E) 0.18 0.21 64 82933 16\tJun\t65.00\t(WMT\tMM-E) 0.03 0.06 150 44079 16\tJun\t70.00\t(WMT\tMN-E) 0.01 0.03 10 3546 16\tJun\t75.00\t(WMT\tMO-E) 0.92 0.2 16\tMay\t60.00\t(WMT\tLL-E) 16\tMay\t62.50\t(WMT\tLA-E) 16\tMay\t65.00\t(WMT\tLM-E) 16\tMay\t67.50\t(WMT\tLR-E) 16\tMay\t70.00\t(WMT\tLN-E) 16\tMay\t75.00\t(WMT\tLO-E) 16\tJun\t47.50\t(WMT\tAW-E) 4.8 2.96 1.84 0.96 16\tJun\t62.50\t(WMT\tAA-E) 3.33 16\tMay\t55.00\t(WMT\tLK-E) 16\tJun\t60.00\t(WMT\tAL-E) 0 0.03 16\tMay\t52.50\t(WMT\tLX-E) 16\tJun\t57.50\t(WMT\tAY-E) 10.6 6.6 16\tMay\t50.00\t(WMT\tLJ-E) 16\tJun\t55.00\t(WMT\tAK-E) 28 0 10.15 16\tMay\t47.50\t(WMT\tLW-E) 16\tJun\t52.50\t(WMT\tAX-E) 0 12.3 16\tJun\t42.50\t(WMT\tAV-E) 13.0 5 0 12.6 5 10.1 5 10.75 16\tMay\t45.00\t(WMT\tLI-E) 16\tJun\t50.00\t(WMT\tAJ-E) Bid 5.8 16\tMay\t42.50\t(WMT\tLV-E) 16\tJun\t45.00\t(WMT\tAI-E) Net 0.44 16\tJun\t65.00\t(WMT\tAM-E) 16\tJun\t70.00\t(WMT\tAN-E) 0.18 0.04 16\tJun\t75.00\t(WMT\tAO-E) 0.01 16\tMay\t42.50\t(WMT\tXV-E) Bid Ask Vol Open Int 0.02 0.02 0 3194 0 0.03 0.02 0.07 0.01 0.41 0.15 0 0.02 45 14141 0 0.03 42 16007 0.02 0.03 112 66726 0.08 0.11 20154 0.58 0.62 386 266 3 2.33 2.38 365 10451 4.7 4.8 30 6125 7.55 0 7.05 7.35 0 4164 10.43 0 9.4 9.85 0 2743 10.6 0 11.9 763 0 14.4 0 510 19.5 0.25 0.11 0.01 0.09 0.04 0.18 0.06 0.05 19.4 12.4 14.8 5 19.9 5 0 16.4 10 20 0.28 0.3 219 3497 0.42 0.45 140 68355 0.67 0.7 179 31750 1.06 1.09 210 119331 1.67 1.72 78 3527 2.6 2.65 306 49303 3.85 4 80 1174 5.55 5.7 0 67158 7.6 7.7 10 244 9.3 0 1.35 1.33 9.85 17887 0 0 1619 20.5 0 14.7 19.3 5 10 14.8 5 19.9 5 5 15.75 0 4.7 0 0.02 0 259 0.01 0.02 0.08 0.59 1.85 16\tMay\t60.00\t(WMT\tXL-E) 20656 16\tMay\t62.50\t(WMT\tXA-E) 19428 16\tMay\t65.00\t(WMT\tXM-E) 4278 16\tMay\t67.50\t(WMT\tXR-E) 16\tJun\t45.00\t(WMT\tMI-E) Net 0.27 0.48 16\tJun\t47.50\t(WMT\tMW-E) 0.61 1.05 1.53 2.51 3.85 5.9 7.6 27823