A Stock with a Current Market Price of $50 and a Strike

question 60

Multiple Choice

A stock with a current market price of $50 and a strike price of $45 has an associated call option priced at $6.50. This call has an intrinsic value of ________ and a time value of ________.

• A) $5; $1.50
• B) $1.50; $5
• C) $0; $6.50
• D) $6.50; $0

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Definitions:

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A deliberate act of pretending to be incapable or less skilled to avoid certain tasks or responsibilities.

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