Using the Facebook stock option quotations in Figure 14.1, find the option premium, the time value and the stock index breakeven point for the following puts and calls.

a) August put with a strike price of 82.5

b) August call with the strike price of 85

u of the strike price. Dat from the changes com, options: Composite Option Chain I Most Actives I Greeks Calls & Puts Jul 15 l Near the Money a Type: Monthly a Go ion Aug 15 l 15 IOct 15 Nov 15 IDec 15 l 16 l 17 INear Term IAl Jan p Jan Chain for Facebook, Inc. (FB) he Aug s Last Chg Bid Ask vol open Int Root Strike Puts Last Chg Bid Ask vol open int 21, 2015 8.40 -0.20 8.35 8.50 233 3142 FB Aug 21, 80 Aug 21, 2015 1.22 0.03 1.21 1.22 1110 6230 Aug 21, 2015 6.60 -0.10 6.50 6.60 109 5118 FB 82.5 g 21, 2015 1.85 0.04 1.84 1.85 365 4491 Aug 21, 2015 4.90 -0.20 4.90 4.95 2330 66167 FB 85 Aug 21, 2015 2.68 0.03 2.70 2.71 1212 54821 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 14194 FB 87.5 21, 2015 3.85 3.80 3.85 255 2178 Aug 2015 2.44 -0.14 2.42 2.43 2518 18663 FB 90 Aug 21, 2015 5.15 -0.05 5.15 5.25 168 539 Aug 21, 2015 1.56 -0.16 1.57 1.58 439 8698 FB Aug 21, 2015 6.85 6.80 6.90 132 326 92.5 Aug 21, 2015 0.96 -0.09 0.96 0.97 431 12742 FB 95 Aug 21, 2015 8.38 8.70 8.85 0 ONCEPTS IN 14.1 Describe call and put options Are they issued like other corporate securities? REVIEW 1M 2 what are listed options, and how do they differ from conventional options