You have written a call option on walmart common stock. the option has an exercise price of $ 74, and walmart’s stock currently trades at $ 72. the option premium is $ 1.25 per contract. a. how much of the option premium is due to intrinsic value versus time value? b. what is your net profit if walmart’s stock price decreases to $ 70 and stays there until the option expires? c. what is your net profit on the option if walmart’s stock price increases to $ 80 at expiration of the option and the option holder exercises the option?

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)