Last week you purchased a call option on Collins Inc stock a

Last week, you purchased a call option on Collins, Inc. stock at an option price of $1.05. The stock price last week was $29.00. The strike price is $28.20. What is the intrinsic value per share if Collins, Inc. stock is currently priced at $29.65?

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Intrinsic value = Current price - Strike price Intrinsic value = $29.65 - $28.20 Intrinsic value = $1.45