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 November 115 put?
Definitions:
Mesozoic
An era of geological time from about 252 to 66 million years ago, known as the "Age of Reptiles" and marked by the dominance of dinosaurs.
Cenozoic
The most recent of the three major subdivisions of animal and plant life geologic time, covering the period from 66 million years ago to the present.
Stream Flow
The movement of water within a river or stream channel, driven by gravity and influenced by rainfall, snowmelt, and terrain.
Average Rate
A mathematical calculation representing the change in a quantity divided by the change in another quantity, commonly used in physics and chemistry.
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