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A call option on Project Cash Flow Consulting Inc.'s stock (PCF) has a market price of $7.00. The stock currently sells for $30/share (P), and
| A call option on Project Cash Flow Consulting Inc.'s stock (PCF) has a market price of $7.00. | ||||
| The stock currently sells for $30/share (P), and the option has a strike price of $25/share (X). | ||||
| What is the exercise value (payoff) of the call option? | ||||
| What is the option's time value based on the option's market price and the exercise value? | ||||
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrod Harford, David Stangeland, Andras Marosi
3rd Canadian Edition
0135418178, 978-0135418178
