Accounting for Lawyers

The value of the call is the stock price minus the present value of the exercise price, so: C0 = $55 – [$45/1.055] = $12.35 . The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is $10. b. The value of the call is the stock price minus the present value of the exercise ... ................
................