Question: asapppp please Problem 25-11 Time Value of Options (LO2] You are given the following information concerning options on a particular stock: Stock price = $65
Problem 25-11 Time Value of Options (LO2] You are given the following information concerning options on a particular stock: Stock price = $65 Exercise price = $60 Risk-free rate 4% per year, compounded continuously Maturity = 3 months Standard = 42% per year deviation a. What is the intrinsic value of each option? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations.) b. What is the time value of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. Call option intrinsic value a. Put option intrinsic value b. Call option time value b. Put option time value
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