Consider Triple Trice's call option with a $25 strike price. The following table contains historical values for this option at different stock prices:

Create a table which shows

(a) Stock price,

(b) Strike price,

(c) Exercise value,

(d) Option price, and

(e) The premium of option price over exercise value.

MINI CASE?

Assume that you have just been hired as a financial analyst by Triple Trice Inc., a mid-sized California company that specializes in creating exotic clothing. Since no one at Triple Trice is familiar with the basics of financial options, you have been asked to prepare a brief report that the firm's executives could use to gain at least a cursory understanding of the topic. To begin, you gathered some outside materials the subject and used these materials to draft a list of pertinent questions that need to be answered. In fact, one possible approach to the paper is to use a question-and-answer format. Now that the questions have been drafted, you have to develop the answers.

Stock Price $25 30 35 40 45 50 Call Option Price $ 3.00 7.50 12.00 16.50 21.00 25.50