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Consider the lollowing data for a European option: Expiralion = 1 year; Slock price = $105 Exercise price = S 100: Call option price =
Consider the lollowing data for a European option: Expiralion = 1 year; Slock price = $105 Exercise price = S 100: Call option price = $14 Risk-free rate = 5 percent per year. Calculate the intrinsic value and line value of this call. option Multiple Choice Intrinsic value = 5. tme value = Intrinsic value - Um value-14 intrinsic value - 4. time value -10 o o intrinsic valut-14, Lire value
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