A11 Intel Option Valuation

A11 Intel Option Valuation - A11 Intel Option Question 1)...

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A11 Intel Option Question 1) Base your answers on the graph and data on the next page for the listed option contracts. 1. The above graph is for what kind of option? call 2. How do you determine the option Type? You compare the underlying strike price. Consider the appropriate option with a 15 Strike price and answer the following: 3. Determine the underlying asset price for the option with value V 0 . $18.42 4. Curve with label 7 is for what date? 1/22/2008, (option with more time to expiration) 5. For this option determine (V 0 – V 2) and name this value. 18.42 (asset p)-15 (strike) = 3.42 Intrinsic Value. 4.00 Option Ask Price -3.42 Intrinsic= 58 cents Time value 6. If possible determine (V 1 -V 2 ) for this option.
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Because V0 has the line with the greatest time to maturity, we will not be able to find a call with less time to maturity (Line 8, V1) that has the same asset price. 7. For this option determine (V 3 -V 4 ). V3-V4 or Time Value is 21.17-15 strike = 6.17 Intrinsic Value
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This note was uploaded on 03/08/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.

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A11 Intel Option Valuation - A11 Intel Option Question 1)...

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