The Time Value on Call Option a Is $5 and the Option

question 37

Multiple Choice

The time value on call option A is $5 and the option premium is $8.What is the intrinsic value of call option A?

• A) $40
• B) $13
• C) −$3
• D) $3

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Definitions:

Fuel

Any material that can be consumed to produce energy through a chemical or nuclear reaction, such as gasoline, coal, or uranium.

Cells

The basic structural, functional, and biological units of all living organisms, acting as the building blocks of life.

Dietary Trans-Fatty Acids

Unhealthy fats found in some foods that can increase the risk of heart disease.

Hydrogenated Vegetable Oils

Vegetable oils that have been chemically processed to convert them into a more solid form, often used in processed foods and associated with health risks like heart disease.