Essay
Given the following information, 
a. The intrinsic value of the call is _________.
b. The intrinsic value of the put is _________.
c. The time premium paid for the call is _________.
d. The time premium paid for the put is _________.
At the expiration of the options (i.e., after six months have lapsed), the price of the stock is $45.
e. The profit (loss) from buying the call is _______.
Correct Answer:
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$39 - $35 = $4 b. $40 - $39 = $1 c. $8 -...View Answer
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