What is the intrinsic value of each option

Assignment Help Financial Management

Reference no: EM131517253

You are given the following information concerning options on a particular stock: Stock price = $51 Exercise price = $50 Risk-free rate = 5% per year, compounded continuously Maturity = 6 months Standard deviation = 38% per year

a. What is the intrinsic value of each option? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)

Intrinsic Value Call option $

Put option $

b. What is the time value of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Time Value Call option $

Put option $

PLEASE FOLLOW INSTRUCTIONS ON ROUNDING DECIMALS,

Reference no: EM131517253

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