Ask Question
6 October, 04:30

John purchases a call option with a strike price of $110 that is selling for $3.50 when the stock is trading at $108 per share. what is the intrinsic value of the call option

+2
Answers (1)
  1. 6 October, 06:46
    0
    The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “John purchases a call option with a strike price of $110 that is selling for $3.50 when the stock is trading at $108 per share. what is the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers