Calculate intrinsic value and time value of call-put options

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Reference no: EM13923611

Assume that the euro is trading at a spot price of USD/EUR 1.49.

Further assume that the premium of an American call (put) option with an exercise price of $1.50 is 1.55 (3.70) cents.

Calculate the intrinsic value and the time value of the call and put options.

Reference no: EM13923611

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