Question: answer B and C Return f You have written a call option on Walmart common stock. The option has an exercise price of $77, and

Return f You have written a call option on Walmart common stock. The option has an exercise price of $77, and Walmart's stock currently trades at $75. 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 $73 and stays there until the option expires? c. What is your net profit on the option if Walmart's stock price increases to $83 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)) Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B and C How much of the option premium is due to intrinsic value versus time value? Option Premium 0 Intrinsic value Time value 1.40 Req A Req B and C > Return to question You have written a call option on Walmart common stock. The option has an exercise price of $77, and Walmart's stock currently trades at $75. 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 $73 and stays there until the option expires? c. What is your net profit on the option if Walmart's stock price increases to $83 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) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Reg B and C What is your net profit on the option if IBM's stock price increases to $73 at expiration of the option and you exercise the option and if IBM's stock price decreases to $83? Net profit Net proft per share bi Ber share e d
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