Question
The three call options issued by Tesla Inc are listed below. Suppose that the current price of Tesla is $247.89. Option Option price Strike price
The three call options issued by Tesla Inc are listed below. Suppose that the current price of Tesla is $247.89.
| Option | Option price | Strike price | Expiration date |
| A | $100.20 | $150.00 | October 25, 2019 |
| B | $2.73 | $280.00 | November 1, 2019 |
| C | $19.50 | $250.00 | December 20, 2019 |
Which option has the highest time value? Discuss the determinants of the time value based on the moneyness and time to expiration.
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Private Equity Value Creation Analysis Volume I
Authors: Michael David Reinard
1st Edition
1736077821, 978-1736077825
