Assume a stock is selling for $66.75 with options available at 60, 65, and 70 strike prices.

Question:

Assume a stock is selling for $66.75 with options available at 60, 65, and 70 strike prices. The 65 call option price is at $4.50.
a. What is the intrinsic value of the 65 call?
b. Is the 65 call in the money?
c. What is the speculative premium on the 65 call option?
d. What percentage does the speculative premium represent of price?
e. Are the 60 and 70 call options in the money? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...