If he had a long put option on DEF Shares for which he paid a premium of 75c and the exercise price of the option was $12 and the current market price was $18, at what market price would the options have? Answer to the nearest cent.

a) A zero payoff?

b) A zero profit?

If he was to buy JKL calls at a premium of $8.40 and the exercise price was $24.00 and the current spot price was $30, in the box below write down the following two numbers:

Intrinsic Value -

Time value -