Problem $10-7($LG $10-4)$

You have taken a long position in a call option on IBM common stock. The option has an exercise price of $$149$ and IBM's stock currently trades at $$152.$ The option premium is $$4$ per contract.

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

b$.$ What is your net profit on the option if IBM's stock price increases to $$162$ at expiration of the option and you exercise the op

c$.$ What is your net profit if IBM's stock price decreases to $$142?$

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Req B and C

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

$\backslash$table$[[,$Option Premium$],[$Intrinsic value,$],[$Time value,$]]$