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Following graph shows the intrinsic value, time value and total value of an option. S25.00 $20.00 5 S15.00 S10.00 55.00 SO S80 S85 S90 S95
Following graph shows the intrinsic value, time value and total value of an option. S25.00 $20.00 5 S15.00 S10.00 55.00 SO S80 S85 S90 S95 $100 S105 $110 $115 $120 Intrinsic value - Option price Global-macro Research Institute A) Is it a call or put option? B) At what price the option has the greatest time value? C) What is the maximum loss for the writer of this option
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