SIE: Exercise

Taken from our SIE Online Guide

Exercise

Answer the following questions.

  1. 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. 2. What does it mean to say that an option is American-style?
  3. 3. How long after an option is exercised does it settle?
  4. 4. How long after an option is traded does it settle?
  5. 5. If you ha

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