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You are given the following information concerning options on a particular stock: Stock price = $84 Exercise price = $65 Risk-free rate = 4% per

You are given the following information concerning options on a particular stock: Stock price = $84

Exercise price = $65

Risk-free rate = 4% per year, compounded continuously

Maturity = 4 months

Standard deviation = 54% per year

1) What is the intrinsic value of the call option?

2) Of the put option?

3) What is the time value of the call option?

4) Of the put option?

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