Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Was the Dec. 20 FB 195 call in or out of the money? What was the intrinsic value of this option? What was the time

image text in transcribed

Was the Dec. 20 FB 195 call in or out of the money? What was the intrinsic value of this option? What was the time value of this option?

On Wednesday, Nov. 13, 2019, Facebook stock (symbol FB) closed at $193.21 a share, down $1.28 on the day. Consider the following chart giving the premium as of close of trading on that day on various options on Facebook shares: FB (FACEBOOK INC) Nov 13, 2019 @ 18:36 ET (Delayed) LAST 193.21 CHANGE -1.28 (-0.66%) Calls Last Net 11.16 -1.14 7.8 -0.95 5.1 -0.75 3.02 -0.605 BID 193.2 ASK 193.31 VOL 10,998,531 12/20/2019 Puts Bid Ask Vol Strike Last Net 11.15 11.3 183 FB 185.000 2.64 +0.235 7.75 79 6,556 FB 190.000 4.2 +0.325 5 5.1 1,882 FB 195.000 6.5 +0.55 2.99 3.05 5,285 FB 200.000 9.4 +0.65 Bid Ask 2.61 2.69 4.15 4.3 6.4 6.55 9.35 9.55 Vol 328 7,813 600 155

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Budgeting And Financial Management

Authors: William J. Ward Jr.

2nd Edition

1440833052, 9781440833052

More Books

Students also viewed these Finance questions