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?

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times