On a recent day, shares of Curl Up & Dye (CUD), a chain of hair salons, closed at $52.85 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 CUD stock: To download the chart, click here

In the questions that follow, use the Last Sale column to answer questions which involve option pricing.

1a. What was the premium on the July 20 CUD 52.50 call, i.e., the Curl Up & Dye call which expires in July 2020 and has a strike price of $52.50?

1b. How much would an investor who wanted to buy 2 contracts of this option have had to spend?

1c. What is the formula for the intrinsic value of a call? What was the intrinsic value of the June 2020 CUD 45 call? Was this option in the money or out of the money? What was the time value of this option?

1d. Was the July 2020 CUD 60 call in or out of the money? What was the intrinsic value of this option? What was the time value of this option?