An american style call option with six months to

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An American-style call option with six months to maturity has a strike price of $42. The underlying stock now sells for $50. The call premium is $14.82. What is the intrinsic value of the call? A. $12B. $10C.$8D. $23E. none of the above.50 - 42 = $8.
Difficulty: Easy83. What is the time value of the call?
Difficulty: Moderate21-44
Chapter 21 - Option Valuation84. If the company unexpectedly announces it will pay its first-ever dividend 4 months from today, you would expect that
Difficulty: ModerateShort Answer Questions85. Discuss the relationship between option prices and time to expiration, volatility of the underlying stocks, and the exercise price.
Difficulty: Moderate21-45
Chapter 21 - Option Valuation86. Which of the variables affecting option pricing is not directly observable? If this variable is estimated to be higher or lower than the variable actually is how is the option valuation affected?

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