The Fair Market Value of a Near-Month Call Option with a Strike

question 58

Multiple Choice

The fair market value of a near-month call option with a strike price of $45 is $5,when the stock is trading at $48.
-Based on the preceding information,which of the following is true of the intrinsic and time values associated with this option.

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Glomeromycota

A phylum of fungi forming symbiotic relationships with the roots of most plants, aiding in their nutrient absorption.

Endomycorrhizae

A type of mycorrhiza in which the fungus penetrates the cortical cells of the roots of a vascular plant, forming a mutualistic relationship.

Chytrids

A phylum of simple, aquatic fungi that can be parasitic or saprobic and have a unique mode of mobility involving flagella.

Flagellate

A unicellular nonphotosynthetic protist that has one or more long, whiplike flagella.