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.

---

Definitions:

Sole Proprietorship

A business structure where an individual owner operates the company and is personally responsible for its debts.

Personally Responsible

Taking ownership and accountability for one's actions and duties, being reliable in fulfilling obligations and commitments.

Injuries

Physical harm or damage to the body caused by accidents, falls, hits, weapons, or other external forces.

Federally Registered

A status indicating that a business, trademark, or other item has been officially recorded and recognized by a national government.