Recently, Alibaba stock (symbol BABA) closed at $115.10 a share, up $.26 on the day. Consider the following chart giving the premium as of close of trading on that day on various options on Alibaba shares:

Calls	Last Sale	Net	Bid	Ask	Vol	Open Int		Puts	Last Sale	Net	Bid	Ask	Vol	Open Int
BABA1405L110-E	7.03	-0.52	6.70	7.30	26	909	14 Dec 110.00	BABA1405X110-E	2.12	+0.26	1.95	2.20	5	295
BABA1405L111-E	6.40	-0.25	6.10	6.70	36	42	14 Dec 111.00	BABA1405X111-E	2.64	0.0	2.30	2.60	0	54
BABA1405L112-E	5.86	-0.19	5.50	6.10	14	298	14 Dec 112.00	BABA1405X112-E	2.78	0.0	2.70	3.00	0	122
BABA1405L113-E	5.19	-0.45	4.90	5.40	35	63	15 Dec 113.00	BABA1405X113-E	3.83	+0.33	3.10	3.70	1	39
BABA1405L114-E	4.75	-0.25	4.50	5.00	27	256	15 Dec 114.00	BABA1405X114-E	3.88	+0.07	3.60	4.10	20	169
BABA1405L115-E	4.22	-0.48	4.10	4.40	20	1869	15 Dec 115.00	BABA1405X115-E	4.46	+0.16	4.10	4.70	53	352
BABA1405L116-E	3.82	-0.91	3.70	4.00	11	326	16 Dec 116.00	BABA1405X116-E	5.24	+0.79	4.60	5.40	10	27
BABA1405L117-E	3.49	-0.74	3.30	3.60	13	228	16 Dec 117.00	BABA1405X117-E	5.76	+1.26	5.20	6.00	11	95
BABA1405L118-E	3.05	-1.53	2.95	3.20	1	196	16 Dec 118.00	BABA1405X118-E	5.20	0.0	5.90	6.70	0	54
BABA1405L119-E	3.20	0.0	2.45	2.90	0	361	17 Dec 119.00	BABA1405X119-E	5.12	0.0	6.50	7.40	0	160
BABA1405L120-E	2.42	-0.32	2.30	2.60	776	2543	17 Dec 120.00	BABA1405X120-E	5.80	0.0	7.20	8.00	0	106

a. What is the premium on the December, 115 call, i.e. the call option which expires on the third Friday of December, and has a strike price of $115? b. How much would an investor who wanted to buy 1 contract of this option have had to spend (before considering any commission or fees)? c. What is the formula for the intrinsic value of a call? What was the intrinsic value of the Dec. 118 call? Was this option in the money or out of the money? What was the time value of this option? d. Was the Dec. 114 call in or out of the money? What was the intrinsic value of this option? What was the time value of this option? e. What was the premium on the Dec. BABA 118 put? Was this option in or out of the money? What was the intrinsic value of this put? What is the time value? f. What was the intrinsic value of the Dec. BABA 112 put? Was this option in or out of the money? What was the options time value? g. Based on the $115.10 price of Alibabas shares, what is the leverage on the Dec. 119 call? Round your answer to two decimal places. h. Draw a hockey stick diagram for a short position in the BABA Dec. 119 call.

I. Draw a hockey stick diagram for a long position in the BABA Dec. 118 put.