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Company ABC, which does not pay any dividends, has a stock price of $373. The following options are currently available on ABC stock: Strike Call
Company ABC, which does not pay any dividends, has a stock price of $373. The following options are currently available on ABC stock: Strike Call Price Put Price Expiration Month (K) (c) (p) A 365 May 26.30 11.90 B 370 May 23.50 14.00 C 375 May 20.00 16.10 D380 May 17.40 19.70 A) What is the intrinsic value and time value of put option A? Put option A's intrinsic value is $ ; time value is $ B) What is the intrinsic value and time value of call option B? Call option B's intrinsic value is $ ; time value is $ C) If a trader buys put option Ctoday, what does the terminal spot price need to be at expiration for the trader to break even (i.e. to have a profit of 0)? Put option C's break-even spot price is $ D) If a trader buys call option Dtoday, what does the terminal spot price need to be at expiration for the trader to break even (i.e. to have a profit of c)? Call option D's break-even spot price is $
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