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What Are the Intrinsic Values and Time Premiums of the Following

question 44

Essay

What are the intrinsic values and time premiums of the following call options if the price of the underlying stock is $35? What are the profits and losses to the buyers and the writers if the stock sells for $31 at the options' expiration?

           Strike Price         Price of the Option
             $30                          $7.50
             $35                         $3.00


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