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the underlying price is higher than the strike price of the option A put option has intrinsic value when the underlying price is lower than the strike price of the option Here is how intrinsic value on a call option is calculated: Underlying price strike price intrinsic value

ferior olive as well as to the ventrolateral, mediodorsal, and dorsolateral nuclei of the thalamus Areas 8 and 6 are connected with the ocular and other brainstem motor nuclei and with identical areas of the other cerebral hemisphere through the corpus callosum A massive bundle connects the frontal with the occipital lobe, and the uncinate bundle connects the orbital part of the frontal lobe with the temporal lobe The granular frontal cortex has a rich system of connections both with lower levels of the brain (medial and ventral nuclei and pulvinar of the thalamus) and with virtually all other parts of the cerebral cortex, including its limbic and paralimbic parts As to its limbic connections, the frontal lobe is unique among cerebrocortical areas Electrical stimulation of the orbitofrontal cortex and cingulate gyrus has manifest effects on respiratory, circulatory, and other vegetative functions, as already mentioned These parts of the frontal cortex also receive major afferent projections from other parts of the limbic system, presumably to mediate the emotional responses to sensory experiences; they, in turn, project to other parts of the limbic and paralimbic cortices (hippocampus, parahippocampus, anterior pole of the temporal lobe), amygdala, and midbrain reticular formation These frontal-limbic connections are described in greater detail in Chap 25 Blood is supplied to the medial parts of the frontal lobes by the anterior cerebral artery and to the convexity and deep regions by the superior (rolandic) division of the middle cerebral artery With respect to the physiology of the frontal lobes, the literature is replete with unsubstantiated claims Here are presumed to reside the mechanisms that govern personality, character, motivation, and our unique capacities for abstract thinking, introspection, and planning These qualities and traits do not lend themselves to easy de nition and study or to discrete localization Most of them are too subtle to isolate and measure Except for the more posterior frontal mechanisms subserving motor speech and motility and certain behaviors relating to impulse (conation), neurologists have recognized that the other features of frontal lobe disease are more abstruse.

Visual association area Left Right visual visual cortex cortex Figure 22-6 Connections involved in naming a seen object and in reading The visual pattern is transferred from the visual cortex and association areas to the angular gyrus, which arouses the auditory pattern in the Wernicke area The auditory pattern is transmitted to the Broca s area, where the articulatory form is aroused and transferred to the contiguous face area of the motor cortex With destruction of the left visual cortex and splenium (or intervening white matter), words perceived in the right visual cortex cannot cross over to the language areas and the patient cannot read

For descriptive purposes, the clinical effects of frontal lobe lesions can be grouped under the following categories: (1) motor abnormalities related to the prerolandic motor cortex; (2) speech and language disorders related to the dominant hemisphere; (3) incontinence of bladder and bowel; (4) impairment of certain cognitive functions, especially attention, concentration, capacity for sustained mental activity, and ability to shift from one line of thought or action to another ie, both impersistence and perseveration; (5) akinesia and lack of initiative and spontaneity (apathy and abulia); (6) other changes in personality, particularly in mood and selfcontrol (disinhibition of behavior); and (7) a distinctive abnormality of gait (page 106) With regard to the last three of these having to do with behavior, the anterior half of the brain is in a general sense committed to the monitoring and execution of all cerebral activity This means that all activities motor, cognitive, and emotional are planned and initiated here Of necessity in such a scheme, there must also be inhibitory mechanisms that control or modulate behavior Thus, aside from the overt abnormalities of motor, speech, and voluntary movement, lesions of the frontal lobes give rise to a loss of drive,

impairment of consecutive planning, as well as inability to maintain serial relationships of events and to shift easily from one mental activity to another at times in combination with the release (disinhibition) of sucking, grasping, and groping re exes and other socalled utilization behaviors Furthermore, in the emotional sphere, frontal lobe lesions may cause anhedonia (lack of pleasure), apathy, loss of self-control, disinhibited social behavior, and euphoria, as described further on Motor Abnormalities Voluntary movement involves the motor cortex in its entirety or at least large parts of it, and of the various effects of frontal lobe lesions, most is known about the motor abnormalities Electrical stimulation of the motor cortex elicits contraction of corresponding muscle groups on the opposite side of the body; focal seizure activity has a similar effect Stimulation of Brodmann s area 4 produces movement of discrete muscle groups or, if suf ciently re ned, of individual muscles Repertoires of larger coordinated movements are evoked by stimulation of area 6, the premotor cortex Lesions in the posterior part of the frontal lobe cause spastic paralysis of the contralateral face, arm, and leg Involved are the

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Figure 3-2 Corticospinal and corticobulbar tracts The various lines indicate the trajectories of these pathways, from their origin in particular parts of the cerebral cortex to their nuclei of termination

ni cance in determining the amount of neurologic de cit that results from a unilateral lesion such as capsular infarction Beyond their decussation, the corticospinal pathways descend as well-de ned bundles in the anterior and posterolateral columns of white matter (funiculi) of the spinal cord (Fig 3-2) The course of the noncorticospinal motor pathways (vestibulospinal, reticulospinal, and descending propriospinal) have been traced in man by Nathan and his colleagues The lateral vestibulospinal tract lies at