Is the call in the money-speculative premium on call option

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Reference no: EM13944559

Assume that a stock is selling for $47 with options available at 20, 30, and 40 strike prices. The 40 call option is at 7.5. Calculate the following: (a) The intrinsic value of the $40 call (b) Is the call in the money? (c) The speculative premium on the 40 call option. Please show all work.

Reference no: EM13944559

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