Multiple Choice
Datacorp stock currently trades at $50.August call options on the stock with a strike price of $55 are priced at $5.75.October call options with a strike price of $55 are priced at $6.25.Calculate the value of the time premium between the August and October options.
A) -$0.50
B) $0
C) $0.50
D) $5
E) -$5
Correct Answer:
Verified
Correct Answer:
Verified
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