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

question 68

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 $14. What is the time value of the call?

• A) $8
• B) $14
• C) $0
• D) $6
• E) Cannot be determined without more information

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