Description
Determine the intrinsic values of the following put options when the stock is selling at $63.00 just prior to expiration of the options. explain
a. $55.00 put price
b. $65.00 put price
c. $75.00 put price
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Explanation & Answer
a. zero ; since 55-63 is negative, it will be treated as zero
b. $2 ; 65-63
c. $12 ; 75-63
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