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A9 PUT & Call Contract Value Line

A9 PUT & Call Contract Value Line - c d With 6...

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A9 Option Contract Value lines For this assignment, carefully read the section in the text that discusses option valuation and particularly the relation that option value = time value + intrinsic value. Given this relation, select the colored value “lines” below that represent intrinsic value and time value and place them on the appropriate graph axis. Label them for the following three times: a) At expiration b) With one year to expiration
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Unformatted text preview: c) d) With 6 months to expiration 1) Draw both the time-value & intrinsic value line for a PUT Contract by selecting from the colored lines shown below and placing them on the axis below. Value Asset Price & Strike Price St Pr 2) Draw the same lines for a Call Contract by selecting from the colored lines shown below and placing them on the axis below. Value St Pr Asset Price & Strike Price...
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