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)?

c) $35.00
No. $35.00 is the exercise price of the option in red, not its intrinsic value.
d) 0.40
e) $5.00

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