If the Current Closing Price of the Stock of XYZ

question 87

Essay

If the current closing price of the stock of XYZ, Inc. is $87.50 and the July expiration call options with a strike price of $80 are selling for $9.45, what is the intrinsic value of the option? What is the time value of the option?

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Definitions:

Hypermania

A severe form of mania characterized by excessive energy, euphoria, grandiosity, and a decreased need for sleep.

Psychomotor Retardation

A slowing-down of thought and a reduction of physical movements in an individual, often observed in major depressive disorder.

Cyclothymic Disorder

A mental disorder characterized by periods of hypomanic symptoms as well as periods of depressive symptoms that are not severe enough to qualify as major depressive episodes.

Major Depressive Episode

A period characterized by a severely depressed mood or a loss of interest or pleasure in daily activities, lasting for at least two weeks.