TRP - Trans Canada Corporation Share price 39.00 Calls Month/Strike + 11 AU 38.00 + 11 AU 40.00 + 11 AU 42.00 + 11 SE 38.00 + 11 SE 40.00 11 SE 42.00 Ask Price 1.40 0.20 0.05 1.60 0.52 0.14 Puts Strike + 11 AU 38.00 + 11 AU 40.00 + 11 JL 42.00 + 11 SE 38.00 + 11 SE 40.00 + 11 SE 42.00 Ask Price 0.25 1.25 3.10 0.53 1.54 3.20 a) Compute the time value and intrinsic value for the following options. Show your work! (4 marks) lintrinsic Value Time Value 40 AUG Call 42 SEP Put b) Using the above information, you take the long position in a call option with an exercise price of $40.00 and that expires in August. Prepare a profit/loss (net payoff) schedule for your investments for market prices of $25, $30, $35, $40, $45, $50 and $55 (2 marks) Market Prices 25.00 30.00 35.00 40.00 45.00 50.00 55.00