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Intrinsic value of the option

The following information refers to a six-month call option on the stock of XYZ, Inc. Price of the underlying stock: $50 Strike price of the three-month call: $45 Market price of the option: $10

a) What is the intrinsic value of the option?

b) What is the option's time premium at this price?

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Finance Basics: Intrinsic value of the option

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Intrinsic value of the option

Reference No:- TGS0553034

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Intrinsic value of the option

Reference No:- TGS0553034

Recent Questions Asked Finance Basics

Q : Analyse the implications for health professionals

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