Explain the process and what are risks that were involved

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1. You go long 3 call option contracts for IBM with a strike price of $120.00. The option premium is $3.00 per share. The market price for IBM stock on the day you enter the contracts is $121.25. What is the intrinsic Value and Time Value of each option on the day you enter the contracts?

2. Related to acquisition of another company ( Organisation) , explain the process and what are the risks that were involved ? was the acquisition valuable or costly to the organisation ? Explain and give example for that.

Reference no: EM132038061

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