Question: We can decompose an option's value into four parts: 1) the intrinsic value. 2) the time value of money. 3) the insurance value. and 4

We can decompose an option's value into four parts: 1) the intrinsic value. 2) the time value of money. 3) the insurance value. and 4 ) the impact of pavouts. (dividends) Given the following data on stocks and options S=$50,K=$40,r=10%,T=1,D=$2 and will be paid out at T=0.5 Determine the following values for a European call option selling at $15 today Intrinsic value: (Enter numeric value only, no dollar sign or comma, Kee 2 decimal places) Time Value of Money: (Enter numeric value only, no dollar sign or comma. Keep 2 decimal places) Insurance value: (Enter numeric value only, no dollar sign or comma. Keep 2 decimal places) Sr pac eteinderis: Fy cr. fiinticie value only, no dollar sign or comma. Keep 2 decimal places. HINT: this value bears a negative sign]

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