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.
Definitions:
Smallest Term
In mathematics, it refers to the term in an expression, sequence, or series that has the smallest value.
Equivalent Ratio
A proportional relationship between two numbers or quantities, indicating how many times the first number contains the second.
Smallest Term
Smallest Term generally refers to the term in a mathematical expression or sequence with the smallest numerical value.
Ratio
A numerical relationship indicating the number of times one value is contained within or contains the other.
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