Question: I need help please ASAP! I just need the answer. 1. A stock with a current market price of $26.50 has an associated call option
| I need help please ASAP! I just need the answer. 1. A stock with a current market price of $26.50 has an associated call option priced at $5.60 and a strike price of $22.50. This call has an intrinsic value of ______ and a time value of _____. |
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$1.60; $4.00
$4.00; $1.60
$0; $5.60
$5.60; $0
| 2.You purchase one IBM July 136 call contract for a premium of $11. You hold the option until the expiration date, when IBM stock sells for $145 per share. You will realize a ______ on the investment. |
$900 loss
$200 profit
$900 profit
$200 loss
| 3.An investor purchases a long call at a price of $3.50. The exercise price is $55. If the current stock price is $55.10, what is the break-even point for the investor? |
$58.50
$58.60
$55.00
$51.50
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