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Intel stock price is $21. The put option on Intel stock with strike price X=$25 (expiration March 2022) has a premium P=$5.5. You bought one
Intel stock price is $21. The put option on Intel stock with strike price X=$25 (expiration March 2022) has a premium P=$5.5. You bought one put option at this premium and will hold it to March. 1) For put option premium P=$5.5, how much is the intrinsic value and time value? (4 points) 2) What would be your profit (loss) if Intel stock price is $30 in March? (3 points) 3) What would be your profit (loss) if Intel stock price is $20 in March? (3 points) 4) What Intel stock price will make you breakeven? (4 points)
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