A stock with a current market price of $50 and a strike price of $45 has an associated call option priced at $6.50. This call has an intrinsic value of ______ and a time value of _____.
A. $5; $1.50
B. $1.50; $5
C. $0; $6.50
D. $6.50; $0
A. $5; $1.50
You might also like to view...
The company has no preferred stock outstanding. Calculate the dividend payout ratio. (Round any intermediate calculations and your final answer to two decimal places.)
Pearlman, Inc. provides the following information for 2019:
A) 42.02%
B) 23.36%
C) 30.00%
D) 43.86%
Which of the following concepts helps to explain why communication can fail?
A) Transmission B) Medium C) Barriers D) Encoding E) Interaction
The projected sales price for a new product (which is still in the development stage of the product life cycle) is $50 . The company has estimated the life-cycle cost to be $30 and the first-year cost to be $60 . On this type of product, the company requires a $12 per unit profit. What is the target cost of the new product?
a. $30 b. $38 c. $42 d. $60
Project audits are usually initiated at ad hoc times
Indicate whether the statement is true or false