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:

Nonprofit Corporation

A corporation that operates for educational, charitable, social, religious, civic, or humanitarian purposes rather than to earn a profit.

Earn Profits

The act of making money in excess of the costs incurred in producing or selling goods or services.

Bylaws

Rules and regulations that govern a corporation’s internal management.

Internal Management

The processes, policies, and practices employed within an organization to ensure effective and efficient operations.