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

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