Question
A call option written on CBA has a strike price of $78 and trades at $3.42. CBA share price is $81. The split up of
A call option written on CBA has a strike price of $78 and trades at $3.42. CBA share price is $81. The split up of option value into intrinsic value and time value is:
| $3.00 intrinsic value and $0.42 time value | ||
| -$2.00 intrinsic value and $5.42 time value | ||
| $2.00 intrinsic value and $1.42 time value | ||
| zero intrinsic value and $3.42 time value |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
