Solved: Determine time value of a call option on bond, Financial Accounting

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Determine time value of a call option on bond

Response to the following problem:

Consider the following information for bond W: strike price of call option = 97; current price of bond W = 102; and, call option price = 9. What is the intrinsic value and time value of a call option on bond W?

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Financial Accounting: Determine time value of a call option on bond

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Financial Accounting: Determine time value of a call option on bond

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