You own six call option contracts on WAN stock with a strike price of $30. When...
You own six call option contracts on WAN stock with a strike price of $30. When you purchased the shares the option price was $.45 and the stock price was $30.10. What is the total intrinsic value of these options if the stock is currently selling for $29.70 a share?
Homework Answers
Total intrinsic value of the options is 0.
Stock's current price is $29.70 and the strike price is $30. Stock's current price is less than it's strike price. So, the intrinsic value of each call option contracts =0. So, total intrinsic value of the options is 0.
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