You have written a call option on Walmart common stock. The option has an exercise price of $91, and Walmarts stock currently trades at $89. The option premium is $1.45 per contract.

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

b. What is your net profit if Walmarts stock price decreases to $87 and stays there until the option expires?

c. What is your net profit on the option if Walmarts stock price increases to $97 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))

Req A Req B and C How much of the option premium is d Option Premium Intrinsic value Time value