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The Black Sheep Inc.'s call option has the following characteristics: Exercise price of The Black Sheep Inc.'s call option ($) 140 Annualized risk-free rate 3.3%
The Black Sheep Inc.'s call option has the following characteristics:
Exercise price of The Black Sheep Inc.'s call option ($) | 140 |
Annualized risk-free rate | 3.3% |
Time to expiration of the options (years) | 1.5 |
Standard deviation of the annual stock returns for The Black Sheep Inc.'s stock | 0.23 |
Per-share price for The Black Sheep Inc.'s stock ($) | 130 |
The current value of this call option is $13.1789 dollars, according to the Black-Scholes option pricing formula. This means that this call option is currently _____(at the money/ in the money/ out of the money) . Its time value premium equals __. For a put option with the same characteristics as above, the time value premium equals ____.
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