Question

Option and Strike Price Price of the Option Price of the Stock Calls: LMN, Inc., 60...

Option and Strike Price

Price of the Option

Price of the Stock

Calls: LMN, Inc., 60

$11.00

$68

           LMN, Inc., 70

$1.50

$68

Puts: LMN, Inc., 60

$1.00

$68

LMN, Inc., 70

$4.50

$68

1) Calculate the Intrinsic Value of each call option.

2) Calculate the Time Value of each call option.

3) Calculate the Intrinsic Value of each put option.

4) Calculate the Time Value of each put option.

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