Suppose that a stock is selling for 6675 with options

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Assume a stock is selling for $66.75 with options available at 60, 65, and 70 strike prices. The 65 call option price is at $4.50.

a. What is the intrinsic value of the 65 call?

b. Is the 65 call in the money?

c. What is the speculative premium on the 65 call option?

d. What percentage does the speculative premium represent of common stock price?

e. Are the 60 and 70 call options in the money?

Reference no: EM13476984

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