Investment Management

1 Blair purchased 10 contracts of MSFT December 2016 $60 call at a premium of $1.5. The current price of MSFT stock is $58. What is the intrinsic value of the option? What is the time premium of the call? How much will the price of MSFT has to go up before the option is in the money? How much would she make if the stock price at the end of the option expiration is at $63?

2 Zach sold 20 put option on VRT with a strike price of $20. The premium for the put is $2.5. The current price for VRT is at $30. Two days after Zach made the transaction, the FDA denied a drug application by VRT and the stock price dropped to 12. How much money did Zach make/lose?