Series 7 - General Securities Representative Exam

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OJJ stock is trading at 118.50. OJJ May 115 calls are trading at 11.00. What is the time value of the OJJ May 115 calls?

$11.00
A
$7.50
B
$3.50
C
$0
D

Explanations

The time value is the extrinsic value of the calls. There is 3.50 of intrinsic value. The premium is 11.00. Premium minus intrinsic value is the time value

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