Question
a. The current market price of Belamore Ltd stock is $26.50 and has an associated call option priced at $5.60 and a strike price of
a. The current market price of Belamore Ltd stock is $26.50 and has an associated call option priced at $5.60 and a strike price of $22.50. This call has an intrinsic value of ______ and a time value of _____.
b.
An investor is bearish on Sycamore Inc stock and decided to buy a put with a strike price of $30. Ignoring commissions, if the option was purchased for a price of $.79, what is the break-even point for the investor?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
2nd Edition
0765625229, 9780765625229
