Question
A stock is at $68. A two-month put (strike price = $70) is available at a $5 premium. The intrinsic value is ___ and the
A stock is at $68. A two-month put (strike price = $70) is available at a $5 premium. The intrinsic value is ___ and the time value is ____.
Please note that an option premium equals the sum of the intrinsic value and time value.
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
