If the Share Price Is $21

question 96

Multiple Choice

If the share price is $21.50 and the exercise price and premium of a call option written on that share are $19.90 and $2.00, respectively, what is the time value of the option?

• A)$1.60
• B)$0.00
• C)$2.00
• D)$0.40
• E)Not enough information.

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