An American-Style Call Option with Six Months to Maturity Has

question 79

Multiple Choice

An American-style call option with six months to maturity has a strike price of $35.The underlying stock now sells for $43.The call premium is $12. What is the time value of the call?

• A)$8
• B)$12
• C)$0
• D)$4

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Definitions:

Sales

The total amount of revenue generated from selling goods or services over a given period.

Retained Earnings

Retained earnings represent the portion of a company's net income that is kept within the company after dividends are paid to shareholders, used for reinvestment or debt payment.

December

The Gregorian calendar's final and twelfth month marks the end of the year.

Raw Materials

The basic materials that are processed or used to manufacture goods.