A 6-Month Call Has a Strike Price of $30

question 18

Multiple Choice

A 6-month call has a strike price of $30. The underlying stock is priced at $32.80 and the option premium on the call is $3.40. What is the per share time value of the call?

• A) $0.00
• B) $0.60
• C) $1.40
• D) $2.80
• E) $3.60

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