Atlas Stock Is Selling for $54

question 34

Multiple Choice

Atlas stock is selling for $54.38 a share.A $52.50 call is valued at $2.50.What is the time value of ten call option contracts?

• A)$18.80
• B)$620.00
• C)$188.00
• D)$6.20
• E)$62.00

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Definitions:

Commercial Bank

A financial institution that provides services such as accepting deposits, providing business loans, and offering basic investment products.

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and maintaining stability of the financial system.

Money Supply

The full total of economic financial assets available at a certain moment in an economy.

Federal Open Market Committees

A branch of the Federal Reserve that oversees the nation's open market operations and sets the federal funds rate, influencing the economy.