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?
Now Priced at $20 (50% Discount)
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Consider a project with the following data: accounting break-even quantity = 30,000 units; cash break-even quantity = 16,500 units;life = 6 years; fixed costs = $210,000; variable costs = $29 per unit; required return = 14 percent. Ignoring the ef
1) Compare book value (net worth) per share 2) If there is $48,000 in earnings available to common stockholders and the firm's stock has a P/E of 20 times earnings per share, what is the current price of the stock?
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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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Problem: The book we are using does not explain short and long positions at all. Could someone explain what these mean and how to answer this question? Which one of the following statements about the value of a call option at expiration is false?
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