What effect would an increase on the strike price

Reference no: EM131971854

Question: Everything else being constant, what effect would an increase on the strike price of an option have on the value of a call option? A put option has an exercise price of R75.32. Currently the underlying asset is trading at R79.65. What is the intrinsic value of this option currently, and state whether this option is on or out-of-the-money? All else being equal, is a put option on a high beta share worth more than one on a low beta share? The firms have identical firm-specific risk.

Reference no: EM131971854

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