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An investor is interested in options on the stock of Tourmaline Oil Corp. (TSX: TOU)....

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Accounting

An investor is interested in options on the stock of Tourmaline Oil Corp. (TSX: TOU). These options expire on May 17th,2024. Today the stock price is $60.64. And answer the following questions.What are the intrinsic values of the 58 call (the strike price is $58) and the 62 put?Are the 60 call and 60 put in the money or out of the money?Suppose the quoted price for a 58 put is $1 per share and the investor buys (takes a long position in) the 58 put, draw the profit diagram for his position at the expiry of the option on per share basis. Mark the critical points clearly including maximum profit or loss if there are any, crossover points on axes.

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