Use the following to answer the next four (4) questions

Calls Bid	Calls Ask	Exercise Price	Puts Bid	Puts Ask
$14.95	$15.00	$40.00	$0.95	$1.00
$5.20	$5.25	$50.00	$4.40	$4.45
$1.25	$1.30	$.60.00	$11.95	$12.00

Assuming the stock is currently selling for $52/share and that the size of each contract is 100 shares, answer the following:

Q1.

Using the above-quoted bids and ask and assuming you buy 4 of the $50 call options, what is the time value option?

$2.00

$3.20

$3.25

$800.00

Q2.

Using the above-quoted bids and ask and assuming you sell 2 of the $40 put options, what is the intrinsic value of the option?

$-0.95

$0.00

$0.95

$190.00

Q3.

Using the above-quoted bids and ask assuming you bought 4 of the $60 call options( assuming the size of each contract is 100 shares), what will be the net profit or loss if the stock is selling for $70 on the expiration date?

$10.00

$1,900.00

$3,480.00

4,000.00

Q4.

Using the above-quoted bids and ask and assuming you sold 3 of the $60 put options (assuming the size of each contract is 100 shares), what will be the net profit or loss if the stock is selling for $50 on the expiration date?

$ -3,000.00

$ -585.00

$585.00

$3585.00