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You have taken a long position in a call option on Netflix common stock. The option has an exercise price of $142 and Netflix's stock
You have taken a long position in a call option on Netflix common stock. The option has an exercise price of $142 and Netflix's stock currently trades at $148. The option premium is $7 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit on the option if Netflix's stock price increases to $158 at expiration of the option and you exercise the option? c. What is your net profit if Netflix's stock price decreases to $138 ? Complete this question by entering your answers in the tabs below. What is your net profit on the option if IBM's stock price increases to $158 at expiration of the option and you exercise the option and if 18M 's stock price decreases to $138 ? (Negative amounts should be indicated by a minus sign.)
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