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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Definitions:

Job Analysis

A systematic process of collecting and analyzing information about a job's tasks, responsibilities, and the required skills and qualifications.

HR Managers

Professionals responsible for overseeing the human resources department, including recruitment, retention, performance management, and compliance with employment laws.

Personnel Activities

Actions and tasks related to the management, development, and well-being of employees within an organization.

Work Flow Design

The process of analyzing work processes and procedures to make them more efficient and effective.