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sesenic
1 month ago
14

XYZ stock is trading at $25.75 and XYZ Jul 25 calls are trading at a premium of $2. What is the time value of the Jul 25 calls

Business
1 answer:
Nady [3.2K]1 month ago
5 0

Answer:

$125

Explanation:

Time value = Premium - Intrinsic value

Premium = $2, which equals $200 (2×100)

Intrinsic value = $75

Therefore, Time value = $200 - $75

Resulting in: $125

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