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

question 35

Multiple Choice

An American-style call option with six months to maturity has a strike price of $44. The underlying stock now sells for $54. The call premium is $14. What is the time value of the call?

• A) $8
• B) $12
• C) $6
• D) $4
• E) Cannot be determined without more information

---

Definitions:

Sensitivity

The capacity to perceive and process emotional cues and subtleties in one's environment.

Stimulation

The action of encouraging something to develop, increase, or become more active.

Extraverts

Individuals characterized by their outgoing, energetic, and socially active nature.

Extraverts

Individuals characterized by their outgoing, sociable, and energetic behavior, often thriving in social situations and seeking stimulation from the external world.