Question

A call option with a strike price of $72 on a stock selling at $88 costs...

A call option with a strike price of $72 on a stock selling at $88 costs $17.7. What are the call option’s intrinsic and time values? (Round your answers to 2 decimal places.)

Intrinsic value $
Time value $
0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
A call option with a strike price of $72 on a stock selling at $88 costs...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • A call option with a strike price of $78 on a stock selling at $97 costs...

    A call option with a strike price of $78 on a stock selling at $97 costs $21.5. What are the call option’s intrinsic and time values? what are the Intrinsic value and Time value?

  • A call option with a strike price of $50 on a stock selling at 60 costs...

    A call option with a strike price of $50 on a stock selling at 60 costs $12.5. The call option's intrinsic value is 1) 10, 12.5 2) 12.5, 10 3) 50, 12.5 4) 10, 2.5 5) None of the above 8. and time value is You purchase one share of IBM July call option. The exercise price is 120 and the option premium is $5. You hold the option until the expiration date when IBM stock sells for $123 per...

  • Open Buying a Call Stock Option Open Buying a Put Stock Option Number Strike Stock Call...

    Open Buying a Call Stock Option Open Buying a Put Stock Option Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 35 1.25 1 36 35 1.45 Intrinsic Value Intrinsic Value Time Value Time Value Cost Cost Close Close Number Strike Stock Call Number Strike Stock Put of Contracts Price Price Premium of Contracts Price Price Premium 1 36 40 4.25 1 36 40 0.05 Intrinsic Value Intrinsic Value...

  • < Question of 19 O Save & Ext Submit 8. 10.00 points A call option with...

    < Question of 19 O Save & Ext Submit 8. 10.00 points A call option with a strike price of $56 on a stock selling at $64 costs $8.7. What are the call option's intrinsic and time values? (Round your answers to decimal places.) Intrinsic value Time value References eBook & Resources Worksheet Ceaming Objective: 16-01 dentity the features of an option at anect its market value

  • Last week, you purchased a call option on a stock with a strike price of $35....

    Last week, you purchased a call option on a stock with a strike price of $35. The stock price was $33.30 and the option price was $.35 at that time. What is the current intrinsic value per share if the stock is now selling at $36.60 a share? $1.25 $3.30 $1.60 0

  • A stock's current price is $72. A call option with 3-month maturity and strike price of...

    A stock's current price is $72. A call option with 3-month maturity and strike price of $ 68 is trading for 6, while a put with the same strike and expiration is trading for $20. The risk free rate is 2%. How much arbitrage profit can you make by selling the put and purchasing a synthetic put? (Provide your answer rounded to two decimals.) You have purchased a put option for $ 11 three months ago. The option's strike price...

  • You own six call option contracts on WAN stock with a strike price of $30. When...

    You own six call option contracts on WAN stock with a strike price of $30. When you purchased the shares the option price was $.45 and the stock price was $30.10. What is the total intrinsic value of these options if the stock is currently selling for $29.70 a share?

  • You have written a call option on Walmart common stock. The option has an exercise price...

    You have written a call option on Walmart common stock. The option has an exercise price of $78, and Walmart's stock currently trades at $76. The option premium is $1.45 per contract a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmart's stock price decreases to $74 and stays there until the option expires? c. What is your net profit on the option if Walmart's stock price...

  • 1. Apple stock is selling for $120 per share. Call options with a $117 exercise price...

    1. Apple stock is selling for $120 per share. Call options with a $117 exercise price are priced at $12. What is the intrinsic value of the option, and what is the time value?   2. Twitter is trading at $34.50. Call options with a strike price of $35 are priced at $2.30. What is the intrinsic value of the option, and what is the time value?  

  • A stock is currently selling for $68.96. A call option expiring in 194 days with a strike price o...

    A stock is currently selling for $68.96. A call option expiring in 194 days with a strike price of $65.00 is selling for $8.12; A put option expiring in 133 days with a strike price of $70.00 is selling for $4.57. What is the call option's exercise value? a. $0.00 b. $0.20 c. $0.43 d. $0.61 e. $0.69 f. $1.04 g. $2.22 h. $2.49 i. $3.12 j. $3.53 k. $3.55 l. 3.96 m. $4.16 n. $4.57 o. $5.00 p. $6.74...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT