Consider a call option on a stock, ABC Corp. with a price of $74.20 and a strike price of $85.88. The price of the call option is $0.54. What is the instrinsic value of this option? (Do not use a dollar sign in your answer and round to two decimal places.)
Consider a call option on a stock, ABC Corp. with a price of $74.20 and a strike price of $85.88. The price of the call option is $0.54. What is the instrinsic value of this option? (Do not use a dollar sign in your answer and round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Consider a call option on a stock, ABC Corp. with a price of $74.20 and a strike price
of $85.88. The price of the call option is $0.54.
What is the instrinsic value of this option? (Do not use a dollar sign in your answer
and round to two decimal places.)
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