Currently the May 15th at-the-money call option on company XYZ with a strike price of...
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Currently the May 15th at-the-money call option on company XYZ with a strike price of $450 is selling at $5.40 per call and the May 15th at-the-money put option is selling at $6.00 per put. a. b. (2%*2) What's the intrinsic value of the two options today? (2%*2) What's the time value of the two options today? (7%) If you buy 1 straddle contract today (buy 1 call and 1 put of the same strike price and expiration date), and on May 15 the stock price reaches $455 per share, what'll be your profit/loss for your portfolio
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