Question: Using Excel Spreadsheet You have taken a long position in a call option on IBM common stock. The option has an exercise price of $176

Using Excel Spreadsheet

  1. You have taken a long position in a call option on IBM common stock. The option has an exercise price of $176 and IBMs stock currently trades at $180. The option premium is $5 per contract. (LG 10-4)

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

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    2. What is your net profit on the option if IBMs stock price increases to $190 at expiration of the option and you exercise the option?

    3. What is your net profit if IBMs stock price decreases to $170?

please show formulas in excel

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