Shares of Sweetums Candy Company, makers of the famous NutriYum Bars, are trading for $30.46. You decide to purchase put options which expire in three months with a strike price of $28.67. The options are trading for $7.68. What is the time value of the option?
Shares of Sweetums Candy Company, makers of the famous NutriYum Bars, are trading for $30.46. You decide to purchase put options which expire in three months with a strike price of $28.67. The options are trading for $7.68. What is the time value of the option?
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
Problem 1PS
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Help me please
![Shares of Sweetums Candy Company, makers of the famous NutriYum Bars, are
trading for $30.46. You decide to purchase put options which expire in three months
with a strike price of $28.67. The options are trading for $7.68. What is the time
value of the option?
1) $3.45
O 2) $7.68
3) $5.89
O 4) $1.79](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F977c7873-8efd-43d7-8920-c02d2205c64f%2Fde8e8ce2-e927-4901-832e-1688f72f9597%2Fpc9jua_processed.png&w=3840&q=75)
Transcribed Image Text:Shares of Sweetums Candy Company, makers of the famous NutriYum Bars, are
trading for $30.46. You decide to purchase put options which expire in three months
with a strike price of $28.67. The options are trading for $7.68. What is the time
value of the option?
1) $3.45
O 2) $7.68
3) $5.89
O 4) $1.79
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