A Call Option Has an Exercise Price of $35 and a Stock

question 69

Multiple Choice

A call option has an exercise price of $35 and a stock price of $36.50.If the call option is trading at $2.25,what is the time value embedded in the option?

• A) $0.00
• B) $0.75
• C) $1.50
• D) $2.25

---

Definitions:

Primary Control

Primary control involves attempts to change the external world to fit one's needs or desires, typically through direct action.

Regulation Of Hunger

Regulation of hunger involves the complex interaction of biological mechanisms, including hormones and neural circuits, to maintain energy balance and prompt eating behavior.

Cannon And Washburn

Researchers who conducted experiments on hunger, concluding that stomach contractions signal hunger to the brain.

Stomach Contractions

The movements of the muscles in the stomach involved in the mechanical processing of food.