Question
Chuck owns one DC Feb 25 put trading at $2.55. DCC shares are currently trading at $23.75. What are the time value and intrinsic value
Chuck owns one DC Feb 25 put trading at $2.55. DCC shares are currently trading at $23.75.
What are the time value and intrinsic value of this option?
O 1. Time value = $1.25, Intrinsic value = $1.30
O 2. Time value = $1.30; Intrinsic value = $1.25. Sid to be confirmed
O 3. Time value = $3.75, Intrinsic value = $5.00.
O 4. Time value = $2.55; Intrinsic value = $0.00.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
