Question
A stocks current price is $26. The premium on a March put option with an exercise price of $26.50 is $2.50. The intrinsic value (IV)
A stocks current price is $26. The premium on a March put option with an exercise price of $26.50 is $2.50. The intrinsic value (IV) of the put option is ______________ and its time value (TV) is ____________.
A. $0.50; $2.00
B. $2.00; $0.50
C. 0; $2.50
D. $1.50; $1.00
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
4th International Edition
0132912813, 9780132912815
