What are the call options intrinsic and time values

Assignment Help Finance Basics
Reference no: EM13263989

A call option with a strike price of $47 on a stock selling at $55 costs $11.50.

Required:

What are the call option's intrinsic and time values?

 

Reference no: EM13263989

Questions Cloud

What is the effectve after tax interest rate expense : A firm incurs $70,000 in interest expenses each year. If the tax rate of the firm is 20%, what is the effectve after tax interest rate expense for the firm?
What is the market value per share after the dividend : Verbal Communications, Inc., has 14,000 shares of stock outstanding with a par value of $1 per share and a market value of $32 per share. The firm just announced a 100 percent stock dividend. What is the market value per share after the dividend?
What will the market price per share be after the split : The Peanut Shack has 6,5000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $145,600. The company just announced a 3-for-2 stock split. What will the market price per share be after the split?
What is the change in value of your portfolio : You own 100 shares of Amazon stock (AMZN) and are concerned that the price will go down. You do not want to sell because you have unrecognized capital gains and are in a high tax bracket.
What are the call options intrinsic and time values : A call option with a strike price of $47 on a stock selling at $55 costs $11.50.
What is the present value of your interest : A family trust will convey property to you in 15 years. If the property is expected to be worth 50,000 when you receive it, what is the present value of your interest, discounted at 10 percent annually?
Ow many shares of stock will be outstanding after the stock : The firm has decided to spend all of its excess cash on a share repurchase program. How many shares of stock will be outstanding after the stock repurchase is completed?
How many dollars of revenue must the company generate : Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $180,800, how many dollars of revenue must the company generate in order to reach the break-even point?
What will be the ex-dividend stock price under new growth : The management wants the company to grow. Rather than pay out all of the firm's earnings as a dividend this year (t = 0), the management wants to plow back 60 percent of the earnings into the business.

Reviews

Write a Review

Finance Basics Questions & Answers

  Black-scholes-merton model-find price of european call-stock

Use Black-Scholes-Merton model to find out the price of a 3-month European call on stock with strike price of= $40.

  Segregation of duties

All Clear Corporation is a large manufacturer of custom draperies. In all, the company has seven divisions spread out across the country. Furthermore, the company has adopted a policy of issuing digital certificates for all corporation transactions,

  Optimal debt level-unlevered firm and financial distress

A Corporation is unlevered, zero growth firm with expected EBIT of $4 million and corporate tax rate of 40% Find out the optimal debt level according to MM with corporate taxes (with no financial distress)?

  What is the project payback period

An investment project provides cash inflows of $600 per year for eight years. What is the project payback period if the initial cost is $1,725? What if the initial cost is $3,350? What if it is $5,000?

  How many put option contracts should be purchased

If the portfolio has a beta of 1, how many put option contracts should be purchased and If the portfolio has a beta of 0.5, how many put options should be purchased?

  How might the company hedge or deal with this risk

For example, if an American firm wants to bring those profits back to the US to invest in a project, what risk does the company face?

  Explain determination of real rate of return

Explain Determination of real rate of return

  Discuss different factors that service managers consider

Discuss different factors that service managers consider when setting a firms target capital structure? - Include both - not for profit firms and investor owned firms.

  Compute the percentage bid

Assume the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt.

  Technology trends in 5 year plan

Write down your analysis, advice, and recommendation. In your answer include the aspects of money, time, and resources needed, along with your 5-year plan.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate capital projects

Of the six key methods used to evaluate capital projects, which one do you prefer?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd