A 6-Month Call Has a Strike Price of $50

question 47

Multiple Choice

A 6-month call has a strike price of $50. The underlying stock is priced at $51.30 and the option premium on the call is $1.80. What is the per share time value of the call?

• A)$0
• B)$.40
• C)$.50
• D)$.60
• E)$3.10

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