Question: Answer the following question on intrinsic value and time value. Please give formula and explanation would be nice. Thank You 1a) ABC Inc. stock currently
Answer the following question on intrinsic value and time value. Please give formula and explanation would be nice. Thank You
1a) ABC Inc. stock currently sells for $20. A put option on the stock has a strike price of $11 and currently sells at $5. What is the intrinsic value and the time value of the option?
1b) ABC Inc. stock currently sells for $20. A call option on the stock has a strike price of $11 and currently sells at $5. What is the intrinsic value and the time value of the option? 1c) ABC Inc. stock currently sells for $10. A put option on the stock has a strike price of $11 and currently sells at $1. What is the intrinsic value and the time value of the option?
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