A put option with several months until expiration has a strike price of $55 when the stock price is $50. the option has _____ in

Question

Diano4ka-milaya [45]

3 years ago

13

A put option with several months until expiration has a strike price of $55 when the stock price is $50. the option has _____ in

trinsic value and _____ time value.

Business

1 answer:

yaroslaw [1] · Answer 1 · 2022-05-14T13:23:02+03:00

I had to look for the options and here is my answer:
Based on the blanks provided above, the answers would be ZERO and POSITIVE, respectively. Therefore, in a call option that has many months until it expires has a strike price of $55 when the given price of the stock is $50. Therefore, the option has ZERO intrinsic value and POSITIVE time value.