Question
A crude oil call option has an exercise price of $40 when its spot price is $44. If the call option is trading at $6.65,
A crude oil call option has an exercise price of $40 when its spot price is $44. If the call option is trading at $6.65, what is its intrinsic value?
a. $0
b. $4.00
c. $40.00
d. $44.00
e. $46.65
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
