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:
Personality Category
A classification used to describe and group individuals based on common personality traits or characteristics.
Classification
The systematic process of organizing and categorizing entities based on shared characteristics or principles.
Cardinal Trait
A characteristic or feature that is so dominant in an individual's personality that it influences nearly all of their actions and attitudes.
Dominates
To have a commanding influence on; exercise control over.
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