What is the intrinsic value


Assume a stock is selling for $66.75 with options available at 60, 65, and 70 strike prices. The 65 call option price is at $4.50.

a. What is the intrinsic value of the 65 call?

b. Is the 65 call in the money?

c. What is the speculative premium on the 65 call option?

d. What percentage does the speculative premium represent of common stock price?

e. Are the 60 and 70 call options in the money?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the intrinsic value
Reference No:- TGS0550123

Expected delivery within 24 Hours