The following table presents the data on ABC Corp.s call options at different stock prices. Based on your understanding of exercise value and option prices, complete the table with a strike price of $14.00:

prices, complete the table with a strike price of $14.00: Stock Price ($) Strike Price ($) Market Price of Option ($) Time Value ($) Exercise Value ($) 18.00 32.00 14.00 19.56 64.00 14.00 52.10 2.10 80.00 14.00 68.40 2.40 88.00 14.00 74.00 76.60 96.00 14.00 86.00 4.00 After two weeks, the stock price of ABC Corp. increases to $99.84. Suppose you purchased the shares for $64.00 and then sell the shares at $99.84; your rate of return will be on that transaction. After your analysis, you decided to purchase the option for $52.10, which gives you the right to buy ABC Corp.'s stock at $14.00. If you exercise the option by purchasing the stock at the strike price, you could immediately sell the share of the stock at its market price of $99.84. This will result in a payoff, and the rate of return on your option will be Answer the following questions, based on your understanding of options, option price, and exercise value. True or False: An option's price will always be greater than or equal to its exercise value. This statement is True or False: A call option's payoff (per share) equals the difference between the current stock price and the exercise price. This statement is True or False: If you hold a put option and the current stock price is more than the exercise price, you would lose money by exercising the option; therefore, rather than exercising it, you'd just let the option expire. This statement is