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You have written a call option on Walmart common stock. The option has an exercise...

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Finance

You have written a call option on Walmart common stock. The option has an exercise price of $76, and Walmarts stock currently trades at $74. The option premium is $1.35 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmarts stock price decreases to $72 and stays there until the option expires? c. What is your net profit on the option if Walmarts stock price increases to $82 at expiration of the option and the option holder exercises the option?

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