What is intrinsic value of the call

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You are planning to invest in a call option for which the corresponding stock has yet to issue a dividend. The spot price is $40 per share and its annualized volatility is measured at 68%. The risk free rate is currently 2.5%, while the option tranche you are considering has a strike price of $50 and 18 months to expiration. What is the intrinsic value of the call?

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Reference no: EM131543737

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