Question: Hi, can you help me to answer this question, regarding options topic. An option has a time premium of 0.13. Its exercise price is RM5.50,
Hi, can you help me to answer this question, regarding options topic.
An option has a time premium of 0.13. Its exercise price is RM5.50, the underlying stock price is now RM5.80. What should the option's premium be if it were:
a)A call option
b)A put option
Why the premiums different?
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