What Are the Following Call Options' Intrinsic Values and Time

question 30

Essay

What are the following call options' intrinsic values and time premiums if the price of the underlying stock is $55?
        Option strike price     Price of the call
           Call at $50                    $7.00
           Call at $55                     3.00
           Call at $60                     0.50

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Definitions:

Interests and Values

Personal preferences and principles that guide individuals' choices, behaviors, and attitudes towards various aspects of life.

Inexpensive

Referring to something that does not cost a lot of money; affordable.

Online

Pertaining to activities, interactions, or services that are conducted or available through the internet.

Life Values

Fundamental beliefs or principles that guide an individual's behavior and decision-making process.