You have written a call option on ABC Corp. common stock. The current market price is $108.50 and you purchased the stock 2 years ago for $40.75. The option exercise (strike) price is $100. The option price was $13.70.

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 prices falls to $96.50 and the option expires what will be your profit on strictly the option?

D. If the stock price rises to $125 and the option is exercised will be your gain or loss?