The Strike Price on a Call Option Is $8 and the Price

question 3

Multiple Choice

The strike price on a call option is $8 and the price of the underlying stock is $10.What is the time value of money of the call option if the option premium is $3?

• A)$4
• B)$3
• C)−$2
• D)$1

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Definitions:

Planned Group

A term not commonly recognized in standard sources; likely refers to an assembly of individuals brought together with specific, predetermined objectives in mind. NO

Line of People

A sequence of individuals arranged one behind the other, often waiting for a service or opportunity.

Primary Group

A small social group characterized by close, personal relationships that have a strong influence on its members.

Collective

A term referring to a group of individuals who share common interests, goals, or characteristics, acting as a single entity in certain contexts.