Smith Enterprises Stock Currently Sells for $17

question 50

Multiple Choice

Smith Enterprises stock currently sells for $17.50.A call option on the stock has a strike price of $20 and currently sells at $4.50.What is the time value of the option?

• A) $0
• B) $2.50
• C) $2
• D) $4.50

---

Definitions:

Output Of Apples

The total quantity of apples produced within a given timeframe, often used to measure agricultural productivity.

Advertising Expenditures

Money spent by businesses to promote their products or services through various forms of media such as television, internet, print, or billboards.

Housing Development

A planned residential area, typically consisting of houses built in a similar style and governed by a single management authority.

Damages

Financial compensation required for loss or injury caused by the wrongful act of another party.