Show details of a Generate Practice Problem option with a stock price of $ and an exercise price of $ with an option price $ Practice Problem

Stock Price Exercise Price Option Price

Show details of a Call option with a stock price of $206.00 and an exercise price of $85.00 with an option price $47.00

Calculate Intrinsic Value:
Intrinisic Value = Stock Price - Exercise Price
Intrinisic Value = $206.00 - $85.00
Intrinisic Value = $121.00

Determine In-Out-At the money status:
Since the stock price of $206.00 is greater than the exercise price of $85.00 our Call Option is in the money

Calculate Time Value:
Time Value = Option Value - Intrinsic Value
Time Value = MAX(0, $47.00 - $121.00)
Time Value = $0.00