You purchase one MBI July 120 call contract (equalling 100 shares) for a premium of $5 per share. You hold the option until the expiration date, when MBI stock sells for $123 per share. You will realize a _______ on the investment.

You purchase one MBI July 120 put contract (equalling 100 shares) for a premium of $3 per share. You hold the option until the expiration date, when MBI stock sells for $123 per share. You will realize a ______ on the investment.

You write one MBI July 120 call contract (equalling 100 shares) for a premium of $4 per share. You hold the option until the expiration date, when MBI stock sells for $121 per share. You will realize a ______ on the investment.

You purchase one MBI March 120 put contract (equalling 100 shares) for a put premium $10 per share. The maximum profit that you could gain from this strategy is _________.

Top Flight Stock currently sells for $53. A one-year call option with a strike price of $58 sells for $10, and the risk-free interest rate is 5.5%.

a. What is the price of a one-year put option with a strike price of $58?

b. What is the time value of the put option?