1. A stock is at $68. A two-month put (strike price = $70) is available at a $6 premium.. The intrinsic value is ___ and the time value is ____.
$0 . . . $4
$3 . . . $5
$2 . . . $4
$2 . . . $3.
2. The __________ is NOT a determinant of the value of a call option in the Black-Scholes model?
interest rate
exercise price of the stock
price of the underlying stock
expected beta of the underlying stock