A Stock Has a Market Value of $36

question 64

Multiple Choice

A stock has a market value of $36.10 a share.The $35 call option is priced at $1.48.The intrinsic value of this option is ________,and the time value is ________.

• A)$1.10; $.38
• B)$1.10; $1.48
• C)$0; $1.48
• D)$0; $.38
• E)$0; $1.10