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FakeBook is currently trading at $100 a share, after a string of disastrous bets and gambles by their CEO Mark Meta. Due to this, volatility
FakeBook is currently trading at $100 a share, after a string of disastrous bets and gambles by their CEO Mark Meta. Due to this, volatility of the stock has exploded making the options of Fakebook very expensive. A $95 FakeBook Call, expiring in March 2023 is trading for $12. A) What is the intrinsic value of this option? B) What is the time value of this option?
$0,5,7,12
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