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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 intrinsic value of the January 110 call?
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A psychological state involving feelings of distress, discomfort, and unhappiness.
Positive Affect
A psychological state that involves feelings of enthusiasm, pleasure, and happiness.
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The observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.
Facial Feedback
The hypothesis that facial expressions can influence emotional experiences, suggesting that mimicking an emotional expression can produce the corresponding emotional state.
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