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Moneyness ITM ITM Strike Price 27,00 29,50 32,00 34,50 37,00 39,50 42,00 Call Option Premium $14,25 $10,00 $5,75 $3,25 $2,50 $1,50 $0,75 Intrinsic Value Time
Moneyness ITM ITM Strike Price 27,00 29,50 32,00 34,50 37,00 39,50 42,00 Call Option Premium $14,25 $10,00 $5,75 $3,25 $2,50 $1,50 $0,75 Intrinsic Value Time Value $13,50 $8,75 $3,75 $3,00 $2,50 $1,50 $0,75 Assume underlying (SPOT) price is USD 37 and you are the owner of Call Option. Current option pricing in the market stated above. Q2.1 Fill "Moneyness" column with ITM/ATM/OTM, explain each three and why you placed where it belongs. Q2.2 Explain "Intrinsic Value" and fill in the blanks at that column. Q2.3 Explain "Time Value" and fill in the blanks at that column
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