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JBLU is trading at $22/share. The AUG Call X = 20 is trading at $3.25. Answer...

JBLU is trading at $22/share. The AUG Call X = 20 is trading at $3.25. Answer the following:

a)What is the time value of this option?

b)What is the intrinsic value of this option?

c)Maximum loss to the holder?

d)Maximum loss to the writer?

e)If you write 1 call option on JBLU AUG Call X = 20 for $2.25. At expiration, the stock is trading at $27 and you are exercised. What is your gain or loss? What if the stock rises to $30/share. What is your gain or loss?

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