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Alinara [238K]
4 years ago
9

Three weeks ago, you purchased a July 45 put option on RPJ stock at an option price of $3.20. The market price of RPJ stock thre

e weeks ago was $42.70. Today, RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80. What is the intrinsic value of your put contract
Business
1 answer:
Anton [14]4 years ago
5 0

Answer:

$25

Explanation:

We can calculate intrinsic value by intrinsic formula

Formula : intrinsic Value = (purchased price- current price) x 100

intrinsic Value = (45-44.75) x 100

intrinsic  Value =  $25

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Based on the amount that Jim deposited and the interest paid per year on the account, withdrawing in two equal amounts would require an amount of <u>$530 per year. </u>

<h3>How much should Jim withdraw per year?</h3><h3 />

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(1,040 - x)  x 104 = 100x

Solving for x gives:

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x = 108,160 / 204

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Find out more on future value at brainly.com/question/16180669.

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<h2>Hey there! </h2>

<h2>I guess the correct option is:</h2>

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