Question
The CAD is trading at a spot price of AUD1.7200/CAD. Further, assume that the premium of an American call option with an exercise price of
The CAD is trading at a spot price of AUD1.7200/CAD. Further, assume that the premium of an American call option with an exercise price of AUD1.7000/CAD is 2.50 Australian cents and of an American put option with an exercise price of AUD1.6600/CAD is 2.70 Australian cents.
1.Calculate the intrinsic values of the call and put options.
Give your answer in cents. For example, 1.23 means 1.23c, or $0.0123.
2.Calculate the time value of the call and put options.
Give your answer in cents. For example, 1.23 means 1.23c, or $0.0123.
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
