(SOLVED) Suppose you buy a put option on ABC Inc. for $2.00 that expires in three months with a strike price of $11.00. Currently ABC is trading at $10.35 per share.
Discipline: Finance
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Pages: 1
Words: 31
Question
Suppose you buy a put option on ABC Inc. for $2.00 that expires in three months with a strike price of $11.00.
Currently ABC is trading at $10.35 per share.
The intrinsic and time value on this option is closest to:
Expert Solution Preview
Intrinsic Value Of Put = Max(Strike Price- Spot Price ,0)
= Max(11 - 10.25,0)
= 0.75
Time Value = ............
