Question
A stock is priced at $13.00.A call option on the stock with exercise priceof 10.00 is priced at $4.00.This call has an intrinsic value of
A stock is priced at $13.00.A call option on the stock with exercise priceof 10.00 is priced at $4.00.This call has an intrinsic value of ______ and a time value of _____.
$1.00; $3.00
$3.00; $1.00
$0; $4.00
$4.00; $0
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
