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Please help! On June 1, 2021, Crafton Corp. purchased a call option on shares of XYZ stock. The contract was for 100 shares at a
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On June 1, 2021, Crafton Corp. purchased a call option on shares of XYZ stock. The contract was for 100 shares at a strike price of $130 per share, with an expiration date of August 31, 2021. The option contract premium was $40. On June 30, a market appraisal estimated the time value of the option to be $30. Crafton settled the option contract on August 10. Prices of XYZ stock during the option period are provided below. June 1 $130 June 30 $134 Price of xyz stock: August 10 $139 What was the intrinsic value of the call option contract as of June 30, 2021Step by Step Solution
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