You have purchased a call option on ABC Corp. common stock. The current market price is $77. The option exercise (strike) price is $70. The option price was $12.50.

A. How much of the option price is in the money (intrinsic value)?

B. How much of the option price is for time?

C. If the stock price rises to $96.50 and the option is exercised what will be your profit?

D. If the stock price stays at $77 and the option expires what will be your gain or loss on strictly the option?