Question
You are given the following information concerning options on a particular stock: Stock price = $80 Exercise price = $63 Risk-free rate = 7% per
You are given the following information concerning options on a particular stock: Stock price = $80 Exercise price = $63 Risk-free rate = 7% per year, compounded continuously Maturity = 8 months Standard deviation = 55% per year
a. What is the intrinsic value of the call option?
b. Of the put option?
c. What is the time value of the call option?
d. Of the put option?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
