A 45 Call Option on a Stock Priced at $50

question 73

Multiple Choice

A 45 call option on a stock 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:

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A marketing strategy where branded goods or services are placed in a context usually devoid of ads, like movies or TV shows.

Product Advertisements

Marketing communications that promote and provide information about goods to entice potential buyers.