Question
A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $28 a share, and the option
A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $28 a share, and the option has a strike price of $25 a share. Round your answers to the nearest dollar.
What is the exercise value of the call option?
$
What is the option's time value?
$
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
