Post by: SAVANNAHHOOPER23 on Apr 25, 2021
Question 1
Shares of Sweetums Candy Company, makers of the famous NutriYum Bars, are trading for $30.46. You decide to purchase call options which expire in three months with a strike price of $28.67. The call options are trading for $7.68. What is the time value of the option?◦ $1.79
◦ $3.45
◦ $5.89
◦ $7.68
Question 2
The options on Eldorado Mining expire in 3 months. The premium on the Eldorado put option with the $17.5 strike price reflects
◦ time value only.
◦ intrinsic value only.
◦ a combination of time value and positive intrinsic value.
Post by: upturnedfurball on Apr 25, 2021
Answer 1
$5.89Answer 2
a combination of time value and positive intrinsic value.