Problema call option on bedrock boulders stock has a market, Ask an Expert

Accounting

Problem:

A call option on Bedrock Boulders stock has a market price of $8. The stock sells for $30 a share, and the option has an exercise price of $25 a share.

Required:

Question 1: What is the exercise value of the call option?

Question 2: What is the premium on the option?

Note: Please show guided help with steps and answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168460

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