The Chicago Board Options Exchange $($CBOE$)$ is one of the world's largest options exchanges. CBOE and other options exchanges trade contracts that

give buyers and sellers the right to trade investment assets at a specific price within a specific time period.

A option gives the option holder the right to buy an asset at a fixed price during a particular period. The fixed price, or the price at which the

asset is bought, is called the exercise price.

The Big Walnut Nut Company stock was selling at $$20$ per share on the first day of this month.

If you had a call option on the first of the month with an exercise price of $$18$ and if the option also expires on the first, the value of the option

would be $.$

If the call option expires in six months, the value of the option is likely to be

than the difference in the stock price and exercise price of

the call option at expiration.

If you had a put option on the first of the month with an exercise price of $$18$ and if the option also expires on the first, the value of the option

would be

If the put option expires in six months and the market expects the stock price to decrease, the value of the option is likely to

Now suppose you have another call option and a put option. The selling price of Big Walnut's stock is $$20$ per share on the first day of this month and

the exercise price for both the call and put options is $$24.$

If the exercise price of the call option is $$24$ and the option expires on the first, the value of the option is

If the call option expires in six months and the market expects the stock price to increase, the value of the call option is likely to

If the exercise price of the put option is $$24$ and the option expires on the first, the value of the option is

If the put option expires in six months and the market expects the stock price to increase, the value of the put option is likely to