Use a labelled diagram to explain why the value of a call option with an exercise price of $21.00 and an expiry date of September 2010 is lower than a call option on the same share with:

i)the same exercise price but December 2010 expiry date.

ii)the same expiry date but $20.00 exercise price.

iii)Refer to your diagram to complete the table for the $21 options.