Question
A RM45.00 put option on a stock with the spot price at RM41 is priced at RM6.50 premium. This put has an intrinsic value of
A RM45.00 put option on a stock with the spot price at RM41 is priced at RM6.50 premium. This put has an intrinsic value of __________ and a time value of __________. (Assume no transaction costs and taxes)
a.
RM2.50; RM4.00
b.
RM4.00; RM2.50
c.
RM6.50; RM0
d.
RM0; RM6.50
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
