Business, 05.05.2020 18:16 tatertott6876

An American-style call option with six months to maturity has a strike price of $35. The underlying stock now sells for $43. The call premium is $12.

a) What is the intrinsic value of the call?

b) What is the time value of the call?

c) If the company unexpectedly announces it will pay its first-ever dividend 3 months from today, you would expect that the value of the call would increase, decrease, or remain unchanged?

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An American-style call option with six months to maturity has a strike price of $35. The underlying...

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