SIE: Exercise

Taken from our SIE Online Guide

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Exercise

Answer the following questions

1. Jeremiah owns a call option that is out of the money. The option has a current premium of $5. What is the intrinsic value? What is the time value?
2. What does it mean to say that an option is American-style?
3. How long after an option is exercised does it settle?
4. How long after an option is traded does it

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