An August $152 call is trading at $7.6. What is the time value of the option if

Fantastic news! We've Found the answer you've been seeking!

Question:

An August $152 call is trading at $7.6. What is the time value of the option if the underlying stock price is currently 147?

Related Book For answer-question

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

See More Books

Posted Date: Mar 06, 2024 11:55 AM

See More Questions

The skyrocketing price of oil and other commodities are causing uncertainties in the global economy. Stock markets all over the world are reacting negatively to the phenomenon. You are of the opinion...
Questions 1 to 11 are based on the option's chain data for TSLA. The data is as of the close of business on November 15, 2023 and the stock closed at a price of $242. For all questions, assume you...
1. Which of the following statements about a call option is false? a. A call option is the right, not the obligation, to buy the underlying asset. b. A call option is in the money if the asset price...
The mass-to-charge ratio for the positive ion F+ is 1.97 107 kg/C. Using the value of 1.602 1019 C for the charge on the ion, calculate the mass of the fluorine atom. (The mass of the electron is...
What business strategy recommendations would you make to Deere's management?
The following data were collected from a 0.4-in.-deameter test specimen of polyvinyl chloride (l0 = 2.0 in.): After fracture, the total length was 2,09 in., and the diameter was 0.393 in. Plot the...
Refer to the information in Exercise 22-12. Assume that each of the companys divisions has a required rate of return of 7%. Compute residual income for each division. Data From Exercise 22-12 A food...
a. Assume that Caro-Life wants to maximize the average sales potential of its ten offices. Where should it locate offices and what is the population and geographic area associated with each office?...
A firm just paid an annual dividend of $3.50 per share. Dividends are expected to grow at 5% per year. If the discount rate for this firm is 12%, how much is a share of this firm worth?Group of...
Given the following production plan, use a (a) Chase production strategy (b) Level production strategy to compute the monthly production, ending inventory / (backlog) and workforce levels. A worker...
The graph below shows T(x), the temperature of a bowl of soup as a function of the time it has been sitting on the counter to cool. a) Find the average rate of change in temperature with respect to...
You want to accumulate $500,000 in a savings account in 20 years. If the bank pays 6% compounded annually, how much should you deposit in the account?
Use the information in E14-24 and the assumptions in E14-26 and answer the following questions related to Green Bank (the creditor). Instructions (a) What interest rate should Green Bank use to...
What actions could you as the contractor take to instill a sense of safety among your workers?
Observe several construction sites and ascertain details of their safety program. If possible, attend a tool box safety meeting. Then prepare a list of both good and bad examples of safety practice.
Investigate and report the main safety issues emphasized in a country of your choice other than the United States. You can search the Internet for this exercise.
A pyramid has a square bottom, with area equal to 64 square meters. The height of the pyramid is 7 meters. If you start at the top of the pyramid and slide all the way down the middle of one of the 4...
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
Use the average dividend payout ratio from years 1 and 2, and the forecast net income figure from Practice Problem 28, to estimate the total amount of dividends that will be paid by the company in...
Determine valuation ratios including book value per share, dividend yield, and dividend payout for year2. 2012 Income Statement ($Million) Net sales Less: Cost of goods sold Less: Depreciation...
Explain how commercial paper differs from bankers acceptances.
Graph the following table: a. What is marginal product and average product at each level of production? b. Graph marginal product and average product. c. Label the areas of increasing marginal...
If average product is falling, what is happening to short-run average variable cost?
If marginal cost is increasing, what do we know about average cost?

An August $152 call is trading at $7.6. What is the time value of the option if

Question:

Expert Answer:

To calculate the time value of an option you need to subtract th... View the full answer

Introduction To Corporate Finance

Students also viewed these finance questions