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zalisa [80]
3 years ago
14

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
Business
1 answer:
andreev551 [17]3 years ago
3 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.
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