The exercise price on one of Jarus Corporation's call options is $45 and the price of the underlying stock is $44. The option will expire in 25 days. The option is currently selling for $0.25. Please complete the following in Excel

a. Calculate the option's exercise value?

b. Calculate the value of the premium over and above the exercise value? What does this value represent?

c. Is this an out-of-the money option, at-the-money, or in-the-money? Why?

d. What will happen to the market price of the option if the underlying stock price changes to $44.50? Will the exercise value or the time value change? Explain.

e. If Jarus Corporation had issued a put option (instead of the call), would it have a greater or lesser value than the call option? Why?