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A 45 Call Option on a Stock Priced at $50

Question 73

Multiple Choice

A 45 call option on a stock priced at $50 is priced at $6.50.This call has an intrinsic value of ______ and a time value of _____.


A) $6.50; $0
B) $5.00; $1.50
C) $1.50; $5.00
D) $0; $6.50

Correct Answer:

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