What are the intrinsic values and time premiums paid for the following options? If the stock sells
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What are the intrinsic values and time premiums paid for the following options?
If the stock sells for $31 at the expiration date of the preceding options, what are the profits or losses for the writers and the buyers of theseoptions?
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Option Calls: XYZ, Inc., 30 XYZ, Inc., 35 Puts: XYZ, Inc., 30 XYZ, Inc., 35 Price of the Option $700 2.50 1.25 4.25 Price of the Stock S3A 34 34 34
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Intrinsic value of the calls Price of the stock Strike price Intrinsic value XYZ 30 34 30 4 XYZ 35 3...View the full answer
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