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18. December $80 Call on Tesla stock will expire in one year and will be exercised for sure on the expiration date. Tesla stock is
18. December $80 Call on Tesla stock will expire in one year and will be exercised for sure on the expiration date. Tesla stock is currently selling at $85 per share. Tesla June $80 Call costs $6.57 and is a call option on the same stock with the same strike price that expires in six months. Annual risk-free rate is 4%. What are Tesla December $80 Call's intrinsic value and time value? A. \$5 and $1.57 B. $5 and $3.14 C. $1.57 and $5 D. $5 and $3.08 E. None of the above
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