Question
Checked Call Option Intrinsic Value You have a portfolio of stock call options, as follows: Exercise Number Price of calls Position 55 700 Long 50
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| Call Option Intrinsic Value
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You have a portfolio of stock call options, as follows: |
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Exercise | Number |
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Price | of calls | Position |
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55 | 700 | Long |
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50 | 800 | Short |
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45 | 1,000 | Short |
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40 | 900 | Long |
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At expiration, the stock price is $ 58.50 |
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What is the intrinsic value of your portfolio? |
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A Positive ending cash flow between 0 and 4,000 |
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B Positive ending cash flow between 4,000 and 8,000 |
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C Negative ending cash flow between 0 and -4,000 |
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D Negative ending cash flow between -4,000 and -8,000 |
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