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a. 1. Nike is currently selling at 102.50. You buy a call that expires next March 3, with an exercise price of $105.00. The call
a. 1. Nike is currently selling at 102.50. You buy a call that expires next March 3, with an exercise price of $105.00. The call costs $10.34 per share. What is the intrinsic value of the call today? b. What is the time value of the call today? Assume that next Jan 15 Nike is selling for 113.98. c. What is the IV of the call at this time? d. Assume that the price of the call on 1/15 is 12.71. What is the time value of this option? e. Immediately before expiration, the stock is selling for $109.50. The value of the call is $4.50. What is the IV of the call? f. What is the time value? g. You exercise the call just before expiration. Ignoring commissions, what is your profit per share? h. What is your HPR? i. If the price of the stock was $103.34 on the expiration date, what is the value of the call
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