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Phoenix [80]
3 years ago
14

XYZ stock is trading at $25.75 and XYZ Jul 25 calls are trading at a premium of $2. What is the time value of the Jul 25 calls

Business
1 answer:
RSB [31]3 years ago
5 0

Answer:

$125

Explanation:

Time value = Premium - Intrinsic value

Premium. = 2 or $200 i.e 2×100

Intrinsic value = 75

= $200 - $75

= $125

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