Consider a "SFr Dec 7000 call" selling on the Chicago Mercantile Exchange (CME) at a price of $0.0120/SFr. The current spot rate is $0.7090/SFr.
A) intrinsic value = $0.0000/SFr and time value = $0.0090/SFr
B) intrinsic value = $0.0000/SFr and time value = $0.0120/SFr
C) intrinsic value = $0.0090/SFr and time value = $0.0000/SFr
D) intrinsic value = $0.0090/SFr and time value = $0.0030/SFr
E) intrinsic value = $0.1200/SFr and time value = $0.0090/SFr
Correct Answer:
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