For the next 3 questions suppose the following data holds Philadelphia Exchange Swiss Franc (SF) 65.21 Calls Puts SF 62,500 cents per unit 64 Ma 65 Ma 64 Sep 65 Sep Vol 20 30 20 10 Last 1.95 0.50 2.10 1.20 Vol 10 50 40 20 Last 0.30 0.50 0.40 0.65 1.- What is the time value of 65 Sep SF call option?
2.-Suppose you buy one May 64 SF call option on April 22 and the price of SF goes up to $.70 at the expiration. If you exercise the option what is the profit from the investment? One contract of SF option is for SF 62,500.
3.- Suppose you buy one May 65 SF put option on April 22 and the price of SF goes down to $.60 at the expiration. If you exercise the option what is the profit from the investment? One contract of SF option is for SF 62,500.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?