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A Call Option Has an Exercise Price of $35 and a Stock

Question 69

Multiple Choice

A call option has an exercise price of $35 and a stock price of $36.50.If the call option is trading at $2.25,what is the time value embedded in the option?


A) $0.00
B) $0.75
C) $1.50
D) $2.25

Correct Answer:

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