What is the exercise value of the call option


Problem: A call option on Bedrock Boulders stock has a market price of $7. The stock sells for $30 a share, and the option has an exercise price of $25 a share.

1. What is the exercise value of the call option?

2. What is the premium on the option?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the exercise value of the call option
Reference No:- TGS01745192

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)