A call option on Barry Enterprises stock has a market price of $12. The stock sells for $23 a share, and the option has an exercise price of $15.50. What is the option's time value? Round your answer to the nearest cent.
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A call option on Barry Enterprises stock has a market price of $12. The stock sells for $23 a share, and the option has an exercise price of $15.50. What is the option's time value? Round your answer to the nearest cent.
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- A call option on the stock of Bedrock Boulders has a market price of $7.The stock sells for $30 a share, and the option has a strike price of $25 ashare. What is the exercise value of the call option? What is the option’stime value?Suppose an investor purchases a 3-month call option and a 3-month put option on ABC stock. The strike of the call option is $60; the strike of the put option is $65. Suppose the price of the put option is $4.20, the price of the call option is $3.50. a. Suppose the price of ABC stock at option expiry is $62 per share. What is the payoff and profit/loss on both options positions? b. What is the maximum profit the investor could have earned on his call option position? On the put position? Edit MinitAssuming that a September put option to buy a share for $100 costs $4.50 and is held until September. Under what circumstances will the holder of this option make a profit? Under what circumstances will the option be exercised? Draw a diagram showing how the profit on a long position in the option depends on the stock price at the maturity of the option.
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- You purchase a call option on Stock A with an exercise price of $85 for a premium of $1.9. You hold the option until the expiration date, when Stock A sells for $83 per share. Your profit from the option purchase is ______ per share. (Enter your answer without dollar sign)You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $55. What is your net profit on this option if stock price is $43 at expiration?You have purchased a put option on ABC common stock for $2 per contract. The option has an exercise price of $56. What is your net profit on this option if stock price is S45 at expiration? Moving to another question will save this response.
- You buy a put option on IBM common stock. The option has an exercise price of $136 and IBM’s stock currently trades at $140. The option premium is $5 per contract.a. What is your net profit on the option if IBM’s stock price increases to $150 at expiration of the option and you exercise the option? b. How much of the option premium is due to intrinsic value versus time value?c. What is your net profit if IBM’s stock price decreases to $130?d. Draw the payout diagram at maturity on a short put option position, option premium = $2, and the same exercise price... (Please give the full solution I will upvote)You have purchased a put option on ABC common stock for $3 per contact. The option has an exercise price of $57. What is your net profit on this option if stock price is $45 at expiration?Suppose that a March call option to buy a share for $50 costs $2.50 and is held until March. The holder of the option will gain if the price of the stock is above 52.50 in March. True or False?