Using the Facebook stock option quotations in Figure 14.1, find the option premium, the time value, and the stock index breakeven point for the following puts and calls.

a. The August put with a strike price of $82.50

b. The August call with a strike price of $85

Figure 14.1

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Option Chain | Most Actives | Greeks FB Options: Composite Calls & Puts Near the Money Type: Month Go Jul 15 l Aug 15 | Sep 15 | Oct 15 | Nov 15 Dec 15 | Jan 16| Jan 17 | Near Term | All Option Chain for Facebook, Inc. (FB) Calls Last Chg Bid Ask Vol Open Int Root Strike Puts Last Chg Bid Ask Vol Open Int Aug 21, 2015 8.40 -0.20 8.35 8.50 233 3142 FB 80 Aug 21, 2015 1.22 0.03 1.21 1.22 1110 6230 Aug 21, 2015 6.60 -0.10 6.50 6.60 109 FB 82.5 Aug 21, 2015 1.85 0.04 1.84 1.85 365 4491 Aug 21, 2015 4.90 -0.20 4.90 4.95 2330 66167 FB 85 Aug 21, 2015 2.68 0.03 2.70 2.71 1212 54821 3.80 3.85 255 2178 Aug 21, 2015 2.44 -0.14 2.42 2.43 2518 8663 FB 90 Aug 21, 2015 5.15 -0.05 5.15 5.25 168 539 6.80 6.90 132 326 Aug 21, 2015 0.96 -0.09 0.96 0.97 431 274FB 95 Aug 21, 2015 8.38 8.70 8.85 0 99 Aug 21, 2015 3.53 -0.17 3.50 3.55 1493 14194 FB 87.5 Aug 21, 2015 3.85 Aug 21,2015 1.56 -0.16 1.57 1.58 439 868 FB 92.5 Aug 21, 2015 6.85