You are purchasing call options. You have gathered the following information: Number of options purchased 1,100 Strike Price of Option $35.20 Option Price $4.95 Share Market Price $36.85 Required: 1) Calculate the intrinsic value of each option. Answer: $Answer
2) Calculate the speculative premium of each option. Answer: $Answer
3) Assume the following changes: Share Market Price $40.70 Speculative premium $1.38 What would the new price be of each option?