The time value of an option is the difference between the

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ekkarill92 answered 1 year ago

Explain the difference between a call option and a put option. Explain the difference between an...

Explain the difference between a call option and a put option. Explain the difference between an American option and European option. Find the value of a call option using the binomial option pricing formula for single period when given the following information: you have an option with 6 months until expiration, the payoff in the up scenario is $12, and the payoff in the down scenario is $0, the risk-free rate is 5%, the weight for the up scenario is...

Indicate the difference between a call option and a put option?

The value of a call option can never exceed...(please explain) a. zero. b. the difference between...

The value of a call option can never exceed...(please explain) a. zero. b. the difference between the underlying stock price and the option’s exercise price. c. the option's exercise price. d. the underlying stock price. Compared to a European option, the value of an otherwise identical American option is...(please explain) a. sometimes less, and never greater. b. always equal to the value of the European option. c.sometimes greater, and never less. d. always greater. e. always less. It is never...

1- The time value of an option increases as a) The maturity approaches. b) The option...

1- The time value of an option increases as a) The maturity approaches. b) The option goes deeply ITM (In The Money). c) The option goes deeply OTM (Out of The Money). d) The option is ATM (At the Money). e) Others. 2- If the observed futures price is less than the theoretical futures price, the profitable arbitrage strategy to be applied is a) A cash and carry strategy b) A reverse cash and carry strategy

what the difference between call option and but option ( use your own words

• Using the “Ask” as the price of the option, calculate intrinsic value and time value...

• Using the “Ask” as the price of the option, calculate intrinsic value and time value for each call and put option. CALL OPTIONS PUT OPTIONS Open Int Vol Change Last Bid Ask Intrinsic Time Stock Price Strike Intrinsic Time Bid Ask Last Change Vol Open Int 0 0 0 74 98.8 100.5 $479.93 380 0.03 0.16 0.15 0 0 1,135 0 0 0 68.01 89.9 90.55 $479.93 390 0.1 0.15 0.23 0 0 418 41 14 4.16 81.2 80...

Explain the difference between a call option and a put option. Would you use options in...

Explain the difference between a call option and a put option. Would you use options in your personal investment portfolio?

Why an American option holder chooses the first time, that the time value of option is zero, to exercise the option? Or, in other words, why not choose the last one?

Why an American option holder chooses the first time, that the time value of option is zero, to exercise the option? Or, in other words, why not choose the last one?Basically, what is the benefit to exercise early rather than later if time value is 0?Can Time Value be 0 more than once? or only at expiration?

What is the difference between book value, intrinsic value, enterprise value?

Explain the difference between a long call option and a long futures position.

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