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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