Solved

A Stock with a Current Market Price of $50 and a Strike

Question 60

Multiple Choice

A stock with a current market price of $50 and a strike price of $45 has an associated call option priced at $6.50. This call has an intrinsic value of ________ and a time value of ________.


A) $5; $1.50
B) $1.50; $5
C) $0; $6.50
D) $6.50; $0

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions