What is another name for an option's strike price?
A. Time value
B. Market price
C. Exercise price
D. Intrinsic value
E. Opening price
Answer: Option C is correct
Another name for an option's strike price is exercise price
What is another name for an option's strike price? A. Time value B. Market price C....
Question 59808 What is a put option's strike price? A The amount the holder pays the writer when the contract is opened B. The price at which the writer must sell the asset to the holder if the option is exercised The price at which the writer must purchase the asset from the holder if the option is exercised C. D. The asset price at which the writer and holder both break even
Use the table below to answer the next two questions. Market Price Strike Price Market - Strike Intrinsic Value Time Value Volatility Value Call Price #1 $14.30 $15.00 -0.70 0 $0.30 $ $3.52 #2 $16.50 $15.00 1.50 1.50 $0.28 $1.90 For problem #1 above how much is the intrinsic value and volatility value?
A call option on Project Cash Flow Consulting Inc.'s stock (PCF) has a market price of $7.00. The stock currently sells for $30/share (P), and the option has a strike price of $25/share (X). What is the exercise value (payoff) of the call option? What is the option's time value based on the option's market price and the exercise value? SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW
In 100 words or more: Define a call option's exercise value. Why is the actual market price of a call option usually above its exercise value?
730 CHAPTER 14 Complex Financial Instruments GP P14-5. Nature and identification of financial instruments (L.O. 14-1) (Easy - 10 minutes) In relation to stock options, identify whether each of the following statements is true o True/False Item A stock option provides a right to buy but not a right to sell a share. b. An options fair value is at least as high as its intrinsic value. A stock option's fair value increases with the volatility of the underlying stock...
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...
The intrinsic value of a put is equal to the: a) lesser of the stock price minus the exercise price or zero. b) greater of the strike price minus the stock price or zero. c) lesser of the stock price or zero. d) lesser of the strike price or the stock price. e) greater of the stock price minus the exercise price or zero.
If a call option with a strike price of $65.00 is in the money then: Select one: a. a put option with the same strike price is also in the money. b. the intrinsic value of the call is negative. c. the intrinsic value of a put option with the same strike price is negative. d. a put option with a strike price of $60.00 is out of the money.
A call option has a premium of 2.50, the strike price is 23, and the underlying stock price is 22. What is the option's time value?
What is the exercise value (intrinsic value) at the time of purchase (t = 0) to the holder of a put with strike price $120 if the underlying asset is $125 and the put premium is $5? $0 $5 $10 $15 $20