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Nantes Groups current stock price is $53. The call option sells for $5.80 with a $50 strike price and six months to expiration. What is
Nantes Groups current stock price is $53. The call option sells for $5.80 with a $50 strike price and six months to expiration.
- What is the intrinsic value of the call option today?
- What is the premium of this option today?
- If the perceived future volatility of the shares of Nantes Group was to increase, what would happen to the price of this option?
- If you decided you wanted to buy a one-year call option instead of the six month, would it cost you more or less? Why?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
