On April 4, Alam Company Purchased a Call Option on 10,000

question 33

Multiple Choice

On April 4, Alam Company purchased a call option on 10,000 bushels of corn with delivery on June 30.The strike price is $2.15 per bushel.The value of the option and the market value of the corn are as follows. ?
$$\begin{array} { l r r } & \text { Value of the option } & \text { Value of the corn } \\ \text { Apri1 4 } & \$ 1,830 & \$ 20,400 \\\text { Apri1 30 } & 2,010 & 22,500 \\\text { May 31 } & 2,530 & 23,800 \\\text { June 30 } & 2,700 & 24,200\end{array}$$

• A)On April 4, the intrinsic value of the option is $1,100.
• B)On April 30, the time value of the option is $1,010.
• C)On May 31, the intrinsic value of the option is $230.
• D)On June 30, the time value of the option is $2,700.

---

Definitions:

References

In the context of job applications or academic work, a list of people or sources that can vouch for an individual's qualifications or validate information.

Application Form

A document that potential employees fill out to provide personal and professional information when applying for a job.

Polygraph Act

Legislation regulating the use of polygraph (lie detector) tests, especially in employment settings.