Question: Question 1 You bought a call option with a strike price of $55. The underlying asset is trading for $58 and you paid a premium

Question 1

You bought a call option with a strike price of $55. The underlying asset is trading for $58 and you paid a premium of $13. What is the most you could lose from this strategy?

Question 2

You bought a call option with a strike price of $42.50. The underlying asset is trading for $50.60 and you paid a premium of $22.00. What is the intrinsic value of this option?

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