Question: In the Table below are the ABC Ltd. `s CALL Option prices (expiring on February 2021, March 2021 and April 2021) for various Strike Prices
In the Table below are the ABC Ltd. `s CALL Option prices (expiring on February 2021, March 2021 and April 2021) for various Strike Prices as on 15th January, 2021.
Current Stock Price of ABC Ltd. is Rs 295.
QUESTION: Determine the Intrinsic value and time value of options (expiring on February 2021, March 2021 and April 2021) for various given Strike Prices at current price of Rs 295.
Strike Price (Rs.)
February Call Price (Rs)
Intrinsic Value
Time Value
March Call Price (Rs)
Intrinsic Value
Time Value
April Call Price (Rs)
Intrinsic Value
Time Value
250
46.5
49.5
51.5
275
23
27.8
31.5
300
5.75
11.8
16.5
325
0.75
3.75
7.25
350
0.25
1.25
2.75

Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
