You have written a call option on Walmart common stock. The option has an exercise price of $$80,$ and Walmart$$s stock currently trades at $$78.$ The option premium is $$1\mathrm{.}55$ per contract.

a$.$ How much of the option premium is due to intrinsic value versus time value?

b$.$ What is your net profit if Walmart$$s stock price decreases to $$76$ and stays there until the option expires?

c$.$ What is your net profit on the option if Walmart$$s stock price increases to $$86$ at expiration of the option and the option holder exercises the option?