T-Mobile Wi-Fi 7:40 PM Problems-Options 1.What is the difference between time value and intrinsic value? 2.What is the intrinsic value and time value of the following 3-month stock options? Assume the stock price is $45 40 strike call option with a price of 7 45 strike call option with a price of 4 47 strike call option with a price of 2 40 strike put option with a price of l 45 strike put option with a price of 3 47 strike put option with a price of 4 3. You own a stock currently at S50 You buy a 6-month put option with a 45 strike for a price of 4 You sell a 6-month call option with a 60 strike for a price of 3 Fill in the net profit table for the following stock prices at the end of 6 months. Stock price in 6 months Net value 65 60 50 45 40 4.You can buy or sell calls and puts. Which option has unlimited upside? Which option has unlimited downside? Which option has a limited upside? Which option has a limited downside? 5.You need to buy oi in 3 months. How can you create an option position using puts and calls to limit your exposure to a change in oil prices