Question
The following quotes were observed for options on a given stock and a given year as shown on the table. These are American calls except
The following quotes were observed for options on a given stock and a given year as shown on the table. These are American calls except where indicated. Assume the stock price was 116.19, the risk-free rates were 6.95 percent (November), 7.14 percent (December) and 7.26 percent (January). The times to expiration were 0.0366 (November), 0.1278 (December), and 0.1914 (January). Assume no dividends unless indicated.
| Calls | |||
| Strike | Nov | Dec | Jan |
| 112.22 | 5.19 | 8.61 | 11.13 |
| 109.54 | 4.91 | 5.76 | 8.88 |
| 106.06 | 1.52 | 2.8 | 5.15 |
What is the intrinsic value of the strike 112.22 call?
The following quotes were observed for options on a given stock and a given year as shown on the table. These are American calls except where indicated. Assume the stock price was 116.19, the risk-free rates were 6.95 percent (November), 7.14 percent (December) and 7.26 percent (January). The times to expiration were 0.0366 (November), 0.1278 (December), and 0.1914 (January). Assume no dividends unless indicated.
| Calls | |||
| Strike | Nov | Dec | Jan |
| 112.22 | 5.19 | 8.61 | 11.13 |
| 109.54 | 4.91 | 5.76 | 8.88 |
| 106.06 | 1.52 | 2.8 | 5.15 |
What is the intrinsic value of the strike 109.54 call?
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
