Given the Following Information

Essay

Given the following information,
     Price of a stock                             $39
     Strike price of a six-month call     $35
     Market price of the call                 $8
     Strike price of a six-month put      $40
     Market price of the put                  $3
Finish the following sentences:
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a. The intrinsic value of the call is _________.
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b. The intrinsic value of the put is _________.
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c. The time premium paid for the call is _________.
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d. The time premium paid for the put is _________.
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At the expiration of the options (i.e., after six months have lapsed), the price of the stock is $45.
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e. The profit (loss)from buying the call is _______.
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f. The profit (loss)from writing the call covered (i.e., buying the stock and selling the call)is ________.
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g. The profit (loss)from buying the put is _______.
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h. The profit (loss)from selling the stock short is ______.
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i. The maximum possible loss from buying the put is ______.
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j. At expiration, the maximum price commanded by a put or a call is _______.