Chapter 03 · Section 3.1
Calls and Puts-Intrinsic Value
CALL PUT
Exercise Mar Jun Sep Mar Jun Sep
Price
30 10.15 10.85 11.65 0.05 0.35 0.85
35 5.40 6.90 8.10 0.25 1.35 2.15
40 1.90 4.00 5.35 1.75 3.40 4.35
45 0.40 2.10 3.45 5.30 6.50 7.40
50 0.05 1.05 2.15 10.05 10.50 11.15
Stock price: $40 Today's date: February
What is the intrinsic value of the option in bold (on a per share basis)?
b) $40.00
No. $40.00 is the price of the underlying asset, not the intrinsic value.
c) $35.00
d) 0.40
e) $5.00
a) $5.40
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