A 45 Call Option on a Share Priced at $50

question 26

Multiple Choice

A 45 call option on a share priced at $50 is priced at $6.50. This call has an intrinsic value of ________ and a time value of ________.

• A)$6.50; $0
• B)$5.00; $1.50
• C)$1.50; $5.00
• D)$0; $6.50

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Definitions:

Providing Therapy

The practice of treating psychological disorders and emotional difficulties through professional counseling and psychological techniques.

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A medical doctor specialized in the diagnosis, treatment, and prevention of mental health disorders and emotional problems.

Medical Degree

A qualification awarded to students who have completed studies in the field of medicine, qualifying them to practice as doctors.