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Solved by Expert Tutors
Question

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. What is the intrinsic value of the call?
Select one:
a. $12
b. $23
c. $36
d. $28
e. $8

Step-by-step answer

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Subject: Business, Finance

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