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What is the total intrinsic value of these contracts

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1. You own two call option contracts on ABC stock with a strike price of $15. When you purchased the contracts the option price was $1.20 and the stock price was $15.90. What is the total intrinsic value of these options if ABC stock is currently selling for $14.50 a share?

2. You own ten put option contracts on XYZ stock with an exercise price of $25. What is the total intrinsic value of these contracts if XYZ stock is currently selling for $24.50 a share?

3. The common stock of WIN is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4 percent. What is the per share value of one call option on WIN stock with an exercise price of $55?

4. Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free assets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?

5. You wrote ten call option contracts on JIG stock with a strike price of $41 and an option price of $.60. What is your total profit on this investment if the price of JIG is $46.05 on the option expiration date?

Reference no: EM131718904

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