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:

National Saving

The total amount saved by a country's economy, calculated as the sum of private and public savings, often representing the difference between national income and consumption.

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or migration.

Closed Economy

An economic system that does not engage in international trade with outside countries and relies wholly on its own resources.

Loanable Funds

The funds available for borrowing in the financial markets, consisting of savings and sometimes bank loans that are available to be lent to businesses and individuals.