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Posted on May 20, 2024

On October 29, 2011, a call option on AMETEK Inc. (AME) with an exercise price $50.00 expiring on Dec 17, 2011 was traded at $4.30

On October 29, 2011, a call option on AMETEK Inc. (AME) with an exercise price $50.00 expiring on Dec 17, 2011 was traded at $4.30 and a put option at $0.70. AMETEK Inc. stock was trading at $54.05.

A) What is the intrinsic value of the call option?

B) What is the intrinsic value of the put option?

C) What is the time value of the call option?

D) What is the time value of the put option?

Please show all calculations in Excel.

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