Series 7 - General Securities Representative Exam

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QRST stock is currently trading at $56.00 per share. The Jan. 57 call is trading at 4.00. What is the time value of the Jan 57 call?

1.00
A
3.00
B
4.00
C
56.00
D

Explanations

The time value (extrinsic value) is 4.00. There is no intrinsic value because the call is out-of-the-money

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