What is the intrinsic value of the fifty call

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Assume a stock is selling for P48.50 with options available at 40, 50, and 60 strike prices. The 50 call option price is at P2.75.

Problem a. What is the intrinsic value of the 50 call?

Problem b. Is the 50 call in the money?

Problem c. What is the speculative premium on the 50 call option?

Problem d. What percentage of common stock price does the speculative premium represent?

Problem e. Are the 40 and 60 call options in the money?

Reference no: EM132778931

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