The Fair Market Value of a Near-Month Call Option with a Strike

question 51

Multiple Choice

The fair market value of a near-month call option with a strike price of $45 is $5, when the stock is trading at $48.
Based on the preceding information, the call option:

• A) has no intrinsic value currently.
• B) is at the money.
• C) is out of the money.
• D) is in the money.

Identify the time required to reach a specific amount of interest earned.

Calculate the maturity value of an investment or loan.

Understand how interest rates affect investment growth or loan costs.

Apply simple interest formulas to real-life financial scenarios.

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