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A Long-term Equity Anticipation Security (LEAPS) to buy stock at $24 expires after one year and currently sells for $5. The underlying stock is seiling

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A Long-term Equity Anticipation Security (LEAPS) to buy stock at $24 expires after one year and currently sells for $5. The underlying stock is seiling for $26. a. What is the intrinsic value and the time premium paid for the LEAPS? If the answer is zero, enter "o". Round your answer to the nearest dollar Intrinsic value: $ Time premium: s d. What will be the value of this LEAPSt the price of the stock at the expiration of the LEAPS is $207 $247 528? $367 If the answer is zero, enter "o". Round your answers to the Price of the stock Value of the LEAP at expiration nearest dollar 520 $24 $28 $ ct the price of the stock is $40 at the expiration of the LEAPS, what is the percentage retuen that is earned by an investor in the stock and an investor in the LEAPS? Round your answers to one decimal place. Return in the stock: Return in the LEAPS: Does the option in this problem thustrate the succesful use of financial leverage? This is an example use of financial leverage because the option rose by the amount than the rock rose w

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