Question
Sam bought a call option of The Gap (GPS) stock with a $10 strike on March 30, 2020. The option has an expiration date of
Sam bought a call option of The Gap (GPS) stock with a $10 strike on March 30, 2020. The option has an expiration date of Jun 30, 2022, and Sam paid $.60 (per share) for the option as Gap (GPS) stock was only $6 at the time. In the month's since, Gap's stock has skyrockted back up to $22.00 (it's value today). What is the intrinsic value of this option?
| $0 | ||
| $10 | ||
| $12 | ||
| $11.40 |
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Mathematics Of Finance
Authors: Robert Brown, Petr Zima
2nd Edition
0071756051, 9780071756051
