Question
In: Finance
You are given the following information concerning options on a particular stock: Stock price = $61...
You are given the following information concerning options on a particular stock: Stock price = $61 Exercise price = $60 Risk-free rate = 4% per year, compounded continuously Maturity = 3 months Standard deviation = 46% per year
|
What is the time value of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
Call option? and Put option?
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Please note:
Premium = Intrinsic value + Time value of option
jeff jeffy answered 9 months agoRelated Solutions
You are given the following information concerning options on a particular stock: Stock price =...
You are given
the following information concerning options on a particular
stock:
Stock
price
=
$62
Exercise
price
=
$60
Risk-free
rate
=
5% per year,
compounded continuously
Maturity
=
3 months
Standard
deviation
=
45% per
year
a.
What is the intrinsic
value of each option? (Leave no cells blank - be certain to
enter "0" wherever required. Do not round intermediate
calculations.)
Value
Call
option
$
Put
option
$
b.
What is the time...
You are given the following information concerning options on a particular stock: Stock price =...
You are given the following information concerning options on a
particular stock:
Stock price
=
$76
Exercise price
=
$75
Risk-free rate
=
6% per year, compounded continuously
Maturity
=
6 months
Standard deviation
=
31% per year
a.
What is the intrinsic value of each option? (Leave no
cells blank - be certain to enter "0" wherever required. Do not
round intermediate calculations.)
Value
Call option
$
Put option
$
b.
What is the time...
You are given the following information concerning options on a particular stock: Stock price =...
You are given the following information concerning options on a
particular stock:
Stock price
=
$65
Exercise price
=
$60
Risk-free rate
=
4% per year, compounded continuously
Maturity
=
3 months
Standard deviation
=
42% per year
a.
What is the intrinsic value of each option? (Leave no
cells blank - be certain to enter "0" wherever required. Do not
round intermediate calculations.)
b.
What is the time value of each option? (Do not round
intermediate calculations...
You are given the following information concerning options on a particular stock: Stock price = $62...
You are given the following information concerning options on a
particular stock:
Stock price = $62
Exercise price = $60
Risk-free rate = 5% per year, compounded continuously
Maturity = 3 months
Standard deviation = 45% per year
What is the time value of each option?
You are given the following information concerning the tradesmade on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)PriceVolume$59.9659.973,50059.953,00059.943,40058.953,55060.234,30060.144,600
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
70.01
70.04
3,000
70.02
2,500
70.01
2,900
69.02
3,050
70.40
3,800
70.31
4,100
Price
Up/Down
Price Times...
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain to enter
"0" wherever required. A negative value should be indicated by a
minus sign. Do not round intermediate calculations. Round your
answers to the nearest whole dollar.) Price Volume $ 30.31 30.34
3,800 30.32 3,300 30.31 3,700 29.32 3,850 30.39 4,600 30.30
4,90
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. Negative amounts should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar. Omit the "$" sign
in your response.)
Price
Volume
$
59.97
59.99
3,400
59.97
2,900
59.96
3,300
58.97
3,450
60.20...
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
59.99
60.02
3,200
60.00
2,700
59.99
3,100
59.00
3,250
60.14
4,000
60.05
4,300
You are given the following information concerning the trades made on a particular stock. Calculate the...
You are given the following information concerning the trades
made on a particular stock. Calculate the money flow for the stock
based on these trades. (Leave no cells blank - be certain
to enter "0" wherever required. A negative value should be
indicated by a minus sign. Do not round intermediate calculations.
Round your answers to the nearest whole dollar.)
Price
Volume
$
60.00
60.03
3,100
60.01
2,600
60.00
3,000
59.01
3,150
60.11
3,900
60.02
4,200
Price
Up/Down
Price Times...
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