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You have written a call option on Walmart common stock. The option has an exercise price of $90, and Walmart's stock currently trades at $88.

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You have written a call option on Walmart common stock. The option has an exercise price of $90, and Walmart's stock currently trades at $88. The option premium is $1.40 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 $86 and stays there until the option expires? c. What is your net profit on the option if Walmart's stock price increases to $96 at expiration of the option and the option holder exercises the option? (For all requirements, negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Complete this question by entering your answers in the tabs below. Reg A Req Band How much of the option premium is due to intrinsic value versus time value? Option Premium Intrinsic value Time value RA Req B and C Req A Req B and C . What is your net profit if Walmart's stock price decreases to $86 and stays there until the option expires? . What is your net profit on the option if Walmart's stock price increases to $96 at expiration of the option and the option older exercises the option? Net profit Net profit per share per share

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