Question: PLEASE ANSWER FOR THE TIME VALUE USING THE FORMULA BELOW Apple stock is selling for $125.32 per share. Call options with an $117.00 exercise price

PLEASE ANSWER FOR THE TIME VALUE USING THE FORMULA BELOW

Apple stock is selling for $125.32 per share. Call options with an $117.00 exercise price are priced at $13.47. What is the intrinsic value of the option, and what is the time value? The intrinsic value of the option is $ (Round to the nearest cent.) The time value of the option is $ (Round to the nearest cent.) Try again. To calculate the time value, use the following formula: Time value = Option price - Intrinsic value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

I am totally lost in my investment management class. Can someone show me how to find the intrinsic value of options and the time value of them? For example..... Apple stock is selling for $ 125.82...

PLEASE ANSWER BOTH PARTS OF THE QUESTION, THE INTRINSIC VALUE AND THE TIME VALUE! Apple stock is selling for $125.32 per share. Call options with an $117.00 exercise price are priced at $13.47. What...

PLEASE ANSWER BOTH PARTS OF THE QUESTION Apple stock is selling for $125.32 per share. Call options with an $117.00 exercise price are priced at $13.47. What is the intrinsic value of the option, and...

Apple stock is selling for \$ \\$ 124.29 \$ per share. Call options with an \$ \\$ 117.00 \$ exercise price are priced at \$ \\$ 13.58 \$. What is the intrinsic value of the option, and what is...

Please complete Chapter 14 problems P14.1, P14.3, P14.5 P14.1 Apple stock is selling for $120 per share. Call options with a $117 exercise (strike) price are priced at $12. What is the intrinsic...

Apple stock is selling for $123.28 per share. Call options with an $117.75 exercise price are priced at $13.54. What is the intrinsic value of the option, and what is the time value? The intrinsic...

I answered wuestion 2 and 3. I just need the first question answered please. stock trades question. Astock trades for $45 per share. A call option on that stock has a strike price of $53 and an...

apple stock is selling for $120.00 per share. call options with an $117.00 exercise price are priced at $12.00. what is the intrinsic value of the option, and what si the time value? course hero The...

Apple stock is selling for $120.00 per share. Call options with an $117.00 exercise price are priced at $12.00. What is the intrinsic value of the option, and what is the time value? The intrinsic...

Please set up and solve a price elasticity of demand calculation in the context of your CTM. Start by assigning an equilibrium price and quantity for your CTM good or service. Then introduce a price...

Is all insider trading prohibited? Explain.

A company manufactures and sells a product. The fixed costs of production are 5 , 0 0 0 per month, and the variable cost per unit is 2 0 . The product is sold at a price of $ 5 0 per unit. Based on...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...