Question
Hello, Kindly help to solve and explain the below question Fast Eddie just purchased an APPLE call option that was originally issued 30 days ago
Hello, Kindly help to solve and explain the below question
Fast Eddie just purchased an APPLE call option that was originally issued 30 days ago with a 90 date time frame. It has 60 days left to expire.APPLE original call option had a $100 market price with a $25 call option premium to purchase 30 days ago.Now 30 days later, APPLE stock is at $115.The value of the call option with 60 days left is $50. with a strike price of $175.Fast Eddie believes the APPLE stock will go from $115 to $190 in 60 days, 5G impact.Does an American option value short or longer time as a positive benefit to the value of the call option?
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