The current market price of a share of a stock is $58.33. Both call and put options on this stock have a strike price of $70, the call is ______ and the put is ______. The intrinsic value of the call is _______ and the intrinsic value of the put is ___________. a. out of the money; in the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30. b. out of the money; in the money; $0.00 and would be higher than the intrinsic value of a call with a strike price of $30; $11.67 and would be lower than the intrinsic value of a put with a strike price of $30. c. in the money; out of the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30. d. in the money; out of the money; $11.67 and would be lower than the intrinsic value of a call with a strike price of $30; $0.00 and would be higher than the intrinsic value of a put with a strike price of $30. e. none of the others
The current market price of a share of a stock is $58.33. Both call and put options on this stock have a strike price of $70, the call is ______ and the put is ______. The intrinsic value of the call is _______ and the intrinsic value of the put is ___________. a. out of the money; in the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30. b. out of the money; in the money; $0.00 and would be higher than the intrinsic value of a call with a strike price of $30; $11.67 and would be lower than the intrinsic value of a put with a strike price of $30. c. in the money; out of the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30. d. in the money; out of the money; $11.67 and would be lower than the intrinsic value of a call with a strike price of $30; $0.00 and would be higher than the intrinsic value of a put with a strike price of $30. e. none of the others
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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Question
The current market price of a share of a stock is $58.33. Both call and put options on this stock have a strike price of $70, the call is ______ and the put is ______. The intrinsic value of the call is _______ and the intrinsic value of the put is ___________.
a.
out of the money; in the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30.
b.
out of the money; in the money; $0.00 and would be higher than the intrinsic value of a call with a strike price of $30; $11.67 and would be lower than the intrinsic value of a put with a strike price of $30.
c.
in the money; out of the money; $0.00 and would be lower than the intrinsic value of a call with a strike price of $30; $11.67 and would be higher than the intrinsic value of a put with a strike price of $30.
d.
in the money; out of the money; $11.67 and would be lower than the intrinsic value of a call with a strike price of $30; $0.00 and would be higher than the intrinsic value of a put with a strike price of $30.
e.
none of the others
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