1.A put option sells for $1.20 per share. The current stock price is $20.00 and the exercise price is $19.00. What is the exercise value of the option? What is the option's time value?
2.A call option sells for $2.00 per share. The current stock price is $20.00 and the exercise price is $19.00. What is the exercise value of the option? What is the option's time value?
3.What is the call price for an option if the stock is currently selling for $25.00 per share, the strike price is $35.00, the variance of the stock is .50, the risk free rate is 2%, and the call expires in 3 months?