Multiple Choice
An American-style call option with six months to maturity has a strike price of $42. The underlying stock now sells for $50. The call premium is $14. What is the time value of the call?
A) $8
B) $12
C) $6
D) $4
E) Cannot be determined without more information
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q17: The price of a stock call option
Q22: The intrinsic value of an at-the-money put
Q23: If the hedge ratio for a stock
Q27: Portfolio A consists of 600 shares of
Q40: Which one of the following variables influences
Q48: A put option is currently selling for
Q52: The dollar change in the value of
Q82: Other things equal, the price of a
Q85: Other things equal, the price of a
Q87: Other things equal, the price of a