Options are a means to leverage your position and increase the potential returns, but they also magnify the potential for loss. Select two of your ten stocks and locate prices for the stocks and for call options on those stocks. (Yahoo has option data) Select three call options on each stock with the following:

1. A call whose strike price exceeds the price of the stock (an out-of-the-money) call

2. A call whose strike price approximates the price of the stock (an at-the-money) call

3. A call whose strike price is less than the price of the stock (an in-the-money) call

Select options that will expire within three to six weeks, and answer the following questions:

1. What is the intrinsic value of each option?

2. What is the time premium paid for each option?

3. What is the maximum you could lose if you bought each option?

Stock	Initial Price	Price at Maturity
Netflix	342.79	404.18
Activision Blizzard	58.27	64.06
Exact Sciences Corp	88.88	76.99
Microsoft	162.97	170.33
Verizon	59.86	57.89
Coca-Cola	57.7	46.88
Nike	100.03	89.13
Avita Medical	8.87	6.1
Kinder Morgan	21.43	15.08
Nestle	111.2	106.84