Question: Amazon current share price is $1844. Consider a call and a put option on Amazon stocks with the same strike price of $1900, and same

Amazon current share price is $1844. Consider a call and a put option on Amazon stocks with the same strike price of $1900, and same expiration date of May 17. The cost of the call is c = $46; The cost of the put is p = $98. Which of the following statements is correct:

A

The call is in the money, the intrinsic value is 56, the time value is 10.

B

The call is out of the money, the intrinsic value is 0, the time value is 46.

C

The put is in the money, the intrinsic value is 56, the time value is 42.

D

The put is out of the money, the intrinsic value is 0, the time value is 98.

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