USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.

-Refer to Exhibit 14.5. The time premium for the call option with a $50 exercise price is
A) $0.00.
B) $1.50.
C) $1.75.
D) $4.25.
E) $9.25.

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.
 
-Refer to Exhibit 14.5. The time premium for the call option with a $50 exercise price is
A) $0.00. 
B) $1.50. 
C) $1.75. 
D) $4.25. 
E) $9.25.

Quizplus · Accepted Answer

The Answer of USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.
 
-Refer to Exhibit 14.5. The time premium for the call option with a $50 exercise price is
A) $0.00. 
B) $1.50. 
C) $1.75. 
D) $4.25. 
E) $9.25.