Part I OPTION PRICING PRINCIPLES The following quotes were for the IBM American options on June 1 of a given year. Use this information to answer questions 1-4. The risk-free rates are 7.30% (June) and 7.50\% (July). The times to expiration are .0384 (June) and . 1342 (July). Assume no dividends. 1. What is the intrinsic value of the June 115 call? a. -1 if=+.36%Juea!=750%JyT=0.384Jom b. 0 c. 1.50 d. 2.75 e. None of the above 2. What is the time value of the June 115 call? a. 0 b. 1.50 c. 1.75 d. 2.75 e. None of the above