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A company's call option is trading in the market at $1.50 and its stock price is $12.00 and the speculative/time value of the option
A company's call option is trading in the market at $1.50 and its stock price is $12.00 and the speculative/time value of the option is $0.50. At the same time, the same stock also has a put option with a speculative value of $2.00 and intrinsic/fundamental value of $1.00. a) what is the Intrinsic value of the call option and b) what is the strike price of the put option? Show your total work - just an answer is not enough. (10 marks)
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