16. The stock is currently trading at $32 per share. Consider a put option on this stock with a strike price of $30. The intrinsic value of this put option is: A) $0. B) -$2. C) $2. D) $30.
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- A stock with a current market price of $50 has an associated put option priced at $6.5. This put option has an exercise price of $48. The put option has an intrinsic value of ______ and a time value of ______. Select one: a. $0; $4.5 b. -$2; $8.5 c. $2; $4.5 d. $2; $6.5 e. $0; $6.5A PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration. Suppose the stock price at expiration is $75. Put premium is $3. The PUT option WRITER’S profit would be:a) -$3b) $3c) -$15d) $15e) None of the aboveA PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration Suppose the stock price at expiration is $75. Call premium is $16. The CALL option WRITER’S profit would be:a) -$3b) $3c) -$15d) $15e) None of the above
- A PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration. Suppose the stock price at expiration is $75. Call premium is $16 and Put premium is $3. The CALL option will ___ because the call is ___. But the PUT option will ___ because the put is ___, with a TIME VALUE of ___.a) Be exercised; in-the-money; not be exercised; out-of-the-money; zerob) not be exercised; out-of-the-money; be exercised; in-the-money; zeroc) Be exercised; in-the-money; not be exercised; out-of-the-money; 1d) Be exercised; in-the-money; be exercised; in-the-money; zeroe) None of the above is correctA PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration. 1. Calculate the intrinsic value of the CALL option if the stock is currently selling for$75a) $0b) $15c) -$15d) $57e) 63f) None of the above 2. Calculate the breakeven stock price for the CALL option if the premium is $16. What is the time value of the call?a) $63; $1b) $57; $0c) $76; $16d) $55; $3e) $76; $1f) None of the above 3. Suppose the stock price at expiration is $75. Call premium is $16. The CALL optionWRITER’S profit would be:a) -$3b) $3c) -$15d) $15e) None of the aboveA PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration.1. Calculate the intrinsic value of the PUT option if the stock is currently selling for $75.a) $0b) $15c) -$15d) $57e) 63f) None of the above 2. Calculate the breakeven stock price for the PUT option if the premium is $3. What is the time value of the put?a) $63; $3b) $57; $3c) $55; $0d) $76; $0e) $55; $0f) None of the above 3. Suppose the stock price at expiration is $75. Put premium is $3. The PUT optionWRITER’S profit would be:a) -$3b) $3c) -$15d) $15e) None of the above
- A PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration. Calculate the breakeven stock price for the CALL option if the premium is $16. What is the time value of the call?a) $63; $1b) $57; $0c) $76; $16d) $55; $3e) $76; $1f) None of the abovea $135 put option on a stock priced at $140 is priced at $8.25. This option has a time value of_____ABC Company's current stock price is $100. The risk-free rate is 4%. 38. The payoff to the holder of a call option on ABC with an exercise price of $200 is closest to: A. $100 if stock price at option expiration equals $200 B. Zero if stock price at option expiration equals $100 C. -S40 if stock price at option expiration equals $160
- Assume a stock with an option with the information as follows. • Stock purchased price was $113.• Call option on the stock was purchased at $4. • Call option has strike price at $115.• the stock price is $117on expiration date Please explain the Call Options Payoff Diagrams below, why it plot like this (please explain step by step) . Thank you for your answeringAssume a stock is selling for GH¢48.50 with options available at 40, 50, and 60 strike prices.The 50 call option price is at 2.75.a. What is the intrinsic value of the 50 call?b. Is the 50 call in the money?c. Are the 40 and 60 call options in the money?The price of a stock is $44 per share, and the October put with an exercise price of $45 is selling for $3. The intrinsic value of the option is: