You are given the following data on call and put premia in cents per share for company ABC's shares, currently priced at 425 cents each. Each contract refers to 1000 shares.
Call Premia Call Premia Call Premia Put Premia Put Premia Put Premia
Strike Prices April June September April June September
420 22 31 34 14 20 27
460 6 12 15 39 42 48
(a) List all the call and put premia that are `out of the money'.
(b) Explain your intuition as to why the premia rise between April and September.
(c) Which of the options above has the lowest time value?