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You have a call option to buy 100 shares of MIDBL stock at Rs. 200 before or on Decem ber 31. You paid Rs. 5 per share to option writer. Currently…

BBS Fundamentals of Investment · 2077 · Solved Question with Answer

You have a call option to buy 100 shares of MIDBL stock at Rs. 200 before or on December 31. You paid Rs. 5 per share to option writer. Currently shares of MIDBL stock are selling at Rs. 212 a share. What is the intrinsic value of your options on the shares of MIDBL stock?

Solution

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