The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.
The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December) and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated.
-What is the time value of the January 115 call?
Definitions:
Prenatal Development
The progression of fetal growth and maturation inside the uterus from the moment of conception until delivery.
Vital Organs
Essential organs necessary for survival, including the heart, brain, lungs, kidneys, liver, and pancreas.
Pubescence
The period during which a child's body begins to develop and change as they transition into puberty.
Reproduce
The biological process by which new individual organisms are generated, ensuring the continuation of the species.
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