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:

Nerve Impulses

Electrical signals transmitted along nerve fibers, used for communication between neurons or between neurons and muscles.

Neuroglia

Non-neuronal cells in the central and peripheral nervous systems that provide support and protection for neurons.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Micrograph

A micrograph is a photograph or digital image taken through a microscope or similar device to show a magnified image of an object.