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

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.

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.