What is the exercise value of the call option
Problem: A call option on Bedrock Boulders stock has a market price of $7. The stock sells for $30 a share, and the option has an exercise price of $25 a share.
1. What is the exercise value of the call option?
2. What is the premium on the option?
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Problem: A call option on Bedrock Boulders stock has a market price of $7. The stock sells for $30 a share, and the option has an exercise price of $25 a share. 1. What is the exercise value of the call option? 2. What is the premium on the option?
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