A 6-month call has a strike price of $30.The underlying stock is priced at $31.80 and the option premium on the call is $2.40.What is the per share time value of the call?
A) $0.00
B) $0.60
C) $1.40
D) $2.80
E) $3.60

Name: A 6-month call has a strike price of $30.The underlying stock is priced at $31.80 and the option premium on the call is $2.40.What is the per share time value of the call? A) $0.00 B) $0.60 C) $1.40 D) $2.80 E) $3.60
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Question

Quizplus · Accepted Answer

Time value = $2.40 - ($31.80 - $30) = $0.60

A 6-Month Call Has a Strike Price of $30