What is the option intrinsic value

Assignment Help Finance Basics
Reference no: EM133074442

Assume a call option has a strike price of $50 and a current spot price of $45. The option trades at a premium of $2 and has one month remaining before expiry. What is the option's intrinsic value?

Reference no: EM133074442

Questions Cloud

Prepare journal entries to record these transactions : Prepare journal entries to record these transactions - Dec. 22 Received a cash dividend of $1.25 per share of common stock from Core
What is a whistleblowing policy : What is a whistleblowing policy and how can it help prevent or reduce fraudulent activities from occurring in a company.?
What is yield to maturity : A zero-coupon bond with a face value of $200 is maturing in three years. It trades for $161. What is its yield to maturity?
What is the actual trading price of bond : A bond is quoted at a price of $100.81. What is the actual trading price of this bond? State your answer with two decimal places.
What is the option intrinsic value : The option trades at a premium of $2 and has one month remaining before expiry. What is the option's intrinsic value?
What is the asc citation to support this conclusion : Should Company A still book the asset retirement obligation in it's book? If not, what is the ASC citation to support this conclusion
Derive the two firms total cost functions : Step 1: Derive the two firms' total cost functions for the case in which there is no tax imposed on the taxi industry.
Prepare a proper income statement : Question - Data for VBC, Inc. Income Statement Year runs January 1, 2020 through December 31, 2020 - Prepare a proper income statement
Find amount of money collected by ms dodge from microsoft : Find the amount of money (in dollars) collected by Ms. Dodge from Microsoft and the annual rate of return she earned on this investment

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd