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An American-Style Call Option with Six Months to Maturity Has

Question 11

Multiple Choice

An American-style call option with six months to maturity has a strike price of $35.The underlying stock now sells for $43.The call premium is $12.What is the time value of the call?


A) $8
B) $12
C) $0
D) $4
E) cannot be determined without more information.

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