(Exercise value and time premium) American Express common stock is currently selling for $39.59. A call option expiring in 30 days with a strike price of $40 is selling for $0.85. A put option with the same strike price and expiration is selling for $1.20.
A. What is the exercise value and the time premium of the call option?
Call exercise value=
B. What is the exercise value and the time premium of the put option?
Put exercise value=